The announcement comes just four months after it acquired Para, Inc., a maker of decorative coatings.
The plan, which will be fully implemented by April 2004, calls for cutting 65 positions.
By the end of 2004, Sico will cease manufacturing activities at Para's Brampton, Ontario plant and concentrate production at two facilities-a Toronto plant for colorants and alkyd products and a Quebec City plant for latex products. In addition, Para's R&D activities in Brampton will be transferred to Toronto.
The plan is to "position Para's products for future growth in Canada and to maintain Para's brand image while minimizing the impact on its customer base," according to the company. Sico contends PARA's current marketing strategies and product formulations will be maintained.
As a result of this restructuring Sico will operate four plants in the architectural sector: the Toronto and Quebec City facilities, a plant operated by its Betonel subsidiary and a Mulco products plant, both located in the Montreal area.
Distribution will be revamped by the end of this year. The firm's Toronto facility will be closed and activities will be handled by Para's Brampton facility. Para's warehouses in Quebec and Nova Scotia will be consolidated with existing distribution centers in Longueuil, near Montreal, and Moncton, New Brunswick.
Sico plans to sell four properties and has started negotiations with potential buyers.