Beaulieu Canada will cease production at the bath and floor plant (plant 4)

ACTON VALE, QC, May 6 /CNW Telbec/ - Beaulieu Canada announced today to its employees that it will cease its production at its bath and floor plant in Acton Vale (located in Montérégie). The company's decision will be effective as of July 10, 2010 and will affect the plant's eight management staff, the 25 unionized employees currently working at the plant and the 15 unionized employees who have been on the recall list for two years or less.

The company's decision was made necessary because the customer buying the whole production of this plant decided to repatriate that production in its own U.S. plant which has an overcapacity of production.

Beaulieu Canada is seeking a buyer or a tenant for its bath and floor building. The equipment - which is the property of the customer - will be dismantled. In the meantime, the company will continue to perform full interior and exterior maintenance at the plant.

Beaulieu Canada wishes to specify that this announcement will not affect any of its operations and will continue its manufacturing operations at its two other facilities, one of which is located in Acton Vale and the other in Farnham. The main plant in Acton Vale produces residential and commercial carpet and the Farnham plant produces continuous filament yarn.

The cessation of the activities at the bath and floor plant will not affect Beaulieu Canada's clientele nor its order book with regards to the main products offered.

"We regret to announce today that we must cease our activities at the bath and floor plant. We are fully aware of the impact of this decision on our employees and their families. To deal with this difficult situation, we will set up an adjustment committee to help employees. We want to thank them for their contribution, their work and their commitment to the company," stated Mr. Benoit Leclair, Vice-President of Finance, Chief Financial Officer (CFO) and spokesperson of Beaulieu Canada.

About Beaulieu Canada

Beaulieu Canada's head office is located in Acton Vale, Quebec. The company is one of the largest carpet manufacturers in Canada. It manufactures residential and commercial carpets under the brand names Peerless, Peerless Comfort(R), Coronet(R), Your HomeStyle(R), Cambridge(R) as well as house brands for major floor covering retailers, wholesale distributors and commercial carpet buyers. For more than 50 years, the company has shipped carpets to its clients in Canada, the USA and all over the world. The company also distributes floor covering in hardwood, laminate, engineered wood and resilient.

Beaulieu Canada operates three manufacturing facilities in Quebec as well as two distribution centres, one in Farnham, Quebec and the other in Calgary, Alberta. It also has satellite sales offices in Montreal, Toronto and Calgary. Beaulieu Canada is a privately owned company.

For more information: www.beaulieucanada.ca

SOURCE BEAULIEU CANADA

For further information: For further information: Annick Bélanger, CASACOM, (514) 755-2050; Source: Beaulieu Canada

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BEAULIEU CANADA

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