SHERBROOKE, QUE – Residential furniture manufacturer Shermag Inc. announced the closure of four of its eight plants; those of Dudswell (Bishopton) and Placages Lennox, Cookshire-Eaton, in Québec and those of Edmundston and Saint-François-de-Madawaska in New Brunswick. The closure affects 320 employees and brings the company’s total employees to 750. Measures will be taken to assist the employees in the work transition.
These decisions were made after the analysis made by the Board of Directors’ committee created on Nov. 20. The committee is responsible for identifying the measures to be taken to return Shermag to profitability and ensure its long-term viability.
“It is with the utmost regret that the company is forced to take such measures,” said Claude Pichette, chairman of the board. “Shermag’s situation is part of the crisis that the Canadian manufacturing industry is dealing with. The effect of factors such as the continued strengthening of the Canadian dollar, the crisis of the mortgage loans in the United States and its effect on furniture sales, as well as Asian competition, force Shermag to take strict measures such as the plant closures to return to profitability as quickly as possible.”
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