Brunswick to Mothball Riverview Boat Plant in Knoxville, Make Additional Reductions to Match Market Demand
January 06 2009 - 10:00AM
PR Newswire (US)
LAKE FOREST, Ill., Jan. 6 /PRNewswire-FirstCall/ -- Brunswick
Corporation (NYSE:BC) today announced that it will mothball its
Riverview boat manufacturing facility near Knoxville, Tenn., and
take additional actions aimed at reducing its work force,
production and expenses. One of three manufacturing facilities in
the Knoxville area, Riverview makes Sea Ray boats and will wind
down production during the first quarter of the year. To better
utilize Brunswick's overall boat making capacity, production at
Riverview will be moved to nearby plants in Knoxville and Vonore,
Tenn., which will remain in operation. In addition, production of
certain models will be transferred to Brunswick's Palm Coast
manufacturing facility in Florida, and a Brunswick plant in
Reynosa, Mexico. The final impact of these production shifts on
staff levels at those locations, if any, is still being determined.
At year-end 2008, Brunswick employed about 1,500 people in the
Knoxville area. Approximately 300 production and support positions
at Riverview will be idled by this action over the coming months.
The company said it will work diligently to transfer as many
Riverview employees as possible to the nearby Knoxville and Vonore
manufacturing facilities. By mothballing this facility, Brunswick
retains the option of restoring production should market conditions
reverse and improve. In addition, Brunswick plans to reduce up to
275 additional positions throughout Sea Ray manufacturing and
product development facilities as well as at Sea Ray's Knoxville
headquarters by Friday, Jan. 9. Further, all Sea Ray manufacturing
facilities in Tennessee and Florida have scheduled at least a week
of production furloughs each month through the end of June to
reduce production rates. To be observed generally during the third
week of each month, these furloughs will also provide the
flexibility needed to integrate the models moving between
facilities throughout early 2009. The company said it has the
option to cancel or modify furlough periods, should marine market
demand improve or pipeline inventory be depleted quicker than
anticipated. "We have taken a number of actions over the past few
years in an effort to mitigate persistent difficult conditions in
the global marine market and economy," said Brunswick Chairman and
Chief Executive Officer Dustan E. McCoy. "These actions have
included reduced production rates, as well as virtually halting
production during periodic furloughs. The three plants near
Knoxville have recently completed a production furlough, which has
helped reduce our overall marine pipeline, but the global marine
market remains in a severe downturn because of the weakening
economies here and abroad and anxious consumer sentiment. These
conditions have led to the difficult decision to mothball the
Riverview facility. "This decision does not reflect upon the
Riverview work force or product, but is the result of our need to
develop a more efficient manufacturing footprint that is
appropriate to the marketplace," McCoy added. "In addition to
Riverview, we have closed, mothballed or sold 14 other North
American boat plants since 2006 in response to these difficult
economic conditions." About Brunswick Headquartered in Lake Forest,
Ill., Brunswick Corporation endeavors to instill "Genuine
Ingenuity"(TM) in all its leading consumer brands, including
Mercury and Mariner outboard engines; Mercury MerCruiser
sterndrives and inboard engines; MotorGuide trolling motors;
Teignbridge propellers; Arvor, Bayliner, Bermuda, Boston Whaler,
Cabo Yachts, Crestliner, Cypress Cay, Harris, Hatteras, Kayot,
Lowe, Lund, Maxum, Meridian, Ornvik, Princecraft, Quicksilver,
Rayglass, Sea Ray, Sealine, Triton, Trophy, Uttern and Valiant
boats; Attwood marine parts and accessories; Land 'N' Sea, Kellogg
Marine, Diversified Marine and Benrock parts and accessories
distributors; IDS dealer management systems; Life Fitness, Hammer
Strength and ParaBody fitness equipment; Brunswick bowling centers,
equipment and consumer products; Brunswick billiards tables; and
Dynamo, Tornado and Valley pool tables, Air Hockey and foosball
tables. For more information, visit http://www.brunswick.com/.
DATASOURCE: Brunswick CONTACT: Daniel Kubera, Director - Media
Relations and Corporate Communications of Brunswick,
+1-847-735-4617, Web site: http://www.brunswick.com/
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