Bauer Nike Hockey stated that in response to continued competitive market pressures, it is realigning its Canadian operations to concentrate resources on industry-leading research and development, elite athlete product development and customization.
The restructuring will result in the closure of the company's stick factory in Cambridge, Ont., and its goalie equipment facility in Mississauga, Ont. The skate and helmet manufacturing facility in St. Jérôme, Que., will
remain open with reduced staffing.
“We recognize that the realities of competitive manufacturing affect people and this is clearly a difficult day for all of us,” said Chris Zimmerman, president & CEO of Bauer Nike Hockey and a former collegiate hockey player from the University of Vermont. “We truly appreciate the efforts our employees have made over the years to make these facilities quality
operations, and we are committed to treating all our employees with the greatest of respect and dignity during this difficult period,” added Zimmerman.
To minimize the challenges of the transition, Bauer Nike Hockey is providing employees advance notice, severance and applicable benefits packages, and outplacement counselling, in addition to all statutory
obligations.
Manufacturers elsewhere in Ontario and Quebec have been identified to produce Bauer Nike Hockey equipment where possible. More than 90 per cent of the products currently produced by facilities that are closing will continue to be made in Canada by Canadian suppliers; the remainder will be sourced from international suppliers.
The restructuring will impact 137 employees in Cambridge, 30 in Mississauga, and 154 in St. Jérôme. The Mississauga factory will shut down in May 2004, while the Cambridge facility will close in two phases, beginning
January 2004 with the second phase in March 2004. The St. Jérôme facility will be downsized in three phases beginning December, with subsequent phases in spring and summer of 2004.
Bauer Nike Hockey will continue to employ 225 Canadians at the company's Canadian head office and distribution centre in Mississauga, Ont., its St.
Jérôme skate and helmet factory and the research and development centre in St. Jérôme.
“We can either continue to be challenged under the current competitive environment or make the necessary changes to restore Bauer Nike Hockey's competitive position at the forefront of the international hockey equipment industry,” said Zimmerman. “Our success with such products as the Bauer Vapor XX skate, have been off-set by changes in consumer preference in other product
categories and we need to address our infrastructure through this realignment to allow us to compete within our industry on price, quality and product innovation.”
“The Bauer hockey brand is synonymous with the great sport of hockey in Canada and we take great pride in our Canadian heritage. While industry-driven changes are affecting our facilities and workforce, we believe this course will assist Bauer Nike Hockey's drive to be a stronger, more competitive company.”
Today's announcement is part of a larger strategic process at Bauer Nike Hockey. This strategy includes the introduction of new leadership with a commitment to and belief in hockey, including Zimmerman, and the restructuring of the company's sales division. Also included is a strong investment in the design and development of the best hockey equipment in the world, through the global hockey Research, Design & Development Centre in St. Jérôme — staffed by experts who are passionate about the sport.
