NRI Industries Restructuring

NRI Industries Inc. announced that it has begun restructuring proceedings under the Companies' Creditors Arrangement Act pursuant to an order issued by the Ontario Superior Court of Justice.

NRI converts scrap rubber into finished products for the automotive and industrial markets. NRI's tire recycling plant, one of four facilities in the Greater Toronto Area, annually recycles about 1.5 million tires, which are subsequently used with scrap rubber in NRI's manufacturing processes.

"Fundamental changes in the automotive industry are forcing suppliers to review all aspects of their businesses, and to streamline operations to remain viable in the long term," said Al Power, NRI's president and CEO. "The decision to file for creditor protection will enable us to quickly address our operational and other issues. We intend to move through this process expeditiously."

"We will be working with our valued customers in order to continue to operate normally during the CCAA proceedings," Power said. "With the cooperation of our lenders, we have arranged a facility to fund the business during the proceedings."

NRI attributes its financial challenges to ongoing pricing pressures and a softening in the automotive sector, lower-cost competition from overseas, higher input costs, and the strengthening of the Canadian dollar compared to the US dollar.