Business
Dorel Establishes Juvenile Platform in Brazil - New initiative to capitalize on country's strong market potential
EXCHANGES TSX: DII.B, DII.A MONTREAL, Jan. 6 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII...
About this update from Dorel Industries Inc. Class A
[{"type":"text","content":"\n\n\n\nEXCHANGES\n\n\nTSX: DII.B, DII.A\n\n\nMONTREAL, Jan. 6 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B DII.A)\ntoday announced it is establishing Companhia Dorel Brasil Produtos Infantis\n(Dorel Brazil), a new operating division of the Company's Juvenile segment.\n"Brazil holds tremendous promise and we are well positioned to benefit from\nthe excellent market opportunities that exist there. This is yet another\nstrategic move to further secure Dorel's dominance as a global leader in the\njuvenile products industry," stated Dorel Juvenile Group President Camillo\nLisio.\n\n\nDorel has identified a local partner with solid experience in the\njuvenile sector to act as President of the new venture. Rafael Anjos Camarano\nis well respected in industry circles and has established relations in all of\nBrazil's retail channels. His knowledge will serve the new company well in\nidentifying local consumer trends and preferences. In the past, Mr. Camarano's\nfirm has represented Safety 1st in the Brazilian market. Dorel will be the\nmajority shareholder of the new venture.\n\n\nMr. Lisio said that after carefully analyzing the potential market in\nBrazil, despite current economic conditions and currency issues, it was\ndetermined that there are still a number of compelling reasons to support\nDorel's foray into the country.\n\n\n"Importantly, car seats became mandatory in Brazil in June 2008 and\ndemand has escalated. As the world's largest car seat manufacturer, we will\nmaximize our internal assets and will be able to quickly ramp up the\nmanufacture of car seats locally. Dorel already has the necessary car seat\nmoulds and thus we will save both time and significant costs. As such, our\ntotal investment is under $4 million. There is room for more contemporary\ndesigns in the market and Dorel has a proven track record of providing a wide\nrange of exciting products."\n\n\nHe also pointed out that competition in Brazil is fragmented, and the\ncountry has a young population with a very high birth rate of 18.72 per 1000\npopulation compared to the U.S. rate of 14.18 births per 1000 population. With\nover 196 million residents, Brazil is ranked 7th in world population.\n\n\n"Dorel has the global scope and the experience to maximize the prospects\nin Brazil. We look forward to building this platform into a v...