Accell Group N.V. will phase out manufacturing and assembly operation at Raleigh Canada Limited’s Waterloo, Québec facility in 2013, resulting in the termination of 100 contract employees this summer. The facility will continue to support Raleigh Canadas presence in Canadian market as a distribution and service fulfillment center.
Accell, a Dutch company that acquired U.K.-based Raleigh Cycle Limited in spring 2012, said manufacturing and assembly activity in Waterloo is no longer economically viable. This season 135,000 bicycles will be assembled. For 2014 and beyond, Raleigh Canada will be working with selected offshore suppliers predominantly from Asia to serve its Canadian distribution network.
The manufacturing and assembly activities in Waterloo take place on a seasonal basis. As a result of the termination of these activities, contracts of approximately 100 employees will cease at the end of the seasonal production cycle in June 2013. The reorganization costs will amount to approximately €1.5 million, predominantly for impairment costs of assets and redundancy costs. The reorganization will contribute positively to Accell Groups results as from 2014.
