Brunswick to Consolidate Aluminum Boat Production
February 02 2010 - 1:00PM
PR Newswire (US)
LAKE FOREST, Ill., Feb. 2 /PRNewswire-FirstCall/ -- Brunswick
Corporation (NYSE:BC) today announced that it will consolidate a
portion of its aluminum boat production within its current
manufacturing footprint as part of its ongoing efforts to be more
agile and responsive to marine market demand. "For the past several
years, we have worked hard to institute more flexibility into our
boat-making capabilities," explained Brunswick Chairman and Chief
Executive Officer Dustan E. McCoy. "We have been steadily moving
toward 'category'-type production that focuses more on models and
segments, rather than the traditional approach of having
manufacturing facilities dedicated to a particular brand. Pursuing
such a strategy, we have been better able to size capacity to
anticipated market demand, utilize our available capacity, improve
quality and productivity and significantly lower our fixed costs.
As a result, we are more competitive, offering better value and
quality products for boaters." Over the next several months,
Brunswick will transfer production of its Crestliner and Triton
aluminum boats, now made in Little Falls, Minn., to three other
manufacturing plants. As a result, the Little Falls manufacturing
facility will phase down production and close sometime this fall.
Production of Crestliner and Triton fishboats and pontoons will be
integrated into Brunswick manufacturing plants in New York Mills,
Minn., Lebanon, Mo., and Fort Wayne, Ind. Both the Crestliner and
Triton brands and dealer networks will remain intact, and this
change is expected to be transparent to the dealer network. The
Little Falls facility will begin to ramp down production in May,
and is expected to complete that process in the fall. During that
time, as many as 50 percent of Little Falls' current jobs could be
transferred to the New York Mills or Lebanon facilities. The
company said that it will work with local community leaders and
government organizations to help with the transition of affected
employees. "While consistent with our manufacturing strategy, such
decisions are always difficult," McCoy said. "This decision does
not reflect upon the Little Falls workforce or product, but it is
the result of our overarching need to develop a more efficient
manufacturing footprint that is appropriate to the marine
marketplace, which has been under pressure for several years.
"Since 2007, when the global marine market began to enter into an
extended downturn, Brunswick has done much to make our global
manufacturing footprint more in line with anticipated demand. This
was done to not only mitigate the persistent difficult conditions
in the global marine market and economy, but also to ensure that
Brunswick can both effectively meet current demand and have
sufficient capacity to accommodate increased volume as the
opportunity arises," McCoy concluded. Despite U.S. marine retail
sales hitting their lowest level in nearly 40 years, Brunswick made
significant progress during 2009 in reducing its inventory pipeline
to historically low levels, and improving its overall financial
structure. 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; Attwood marine parts and
accessories; Land 'N' Sea, Kellogg Marine, Diversified Marine and
Benrock parts and accessories distributors; Arvor, Bayliner,
Bermuda, Boston Whaler, Cabo Yachts, Crestliner, Cypress Cay,
Harris, Hatteras, Lowe, Lund, Meridian, Ornvik, Princecraft,
Quicksilver, Rayglass, Sea Ray, Sealine, Triton, Trophy, Uttern and
Valiant boats; Life Fitness and Hammer Strength fitness equipment;
Brunswick bowling centers, equipment and consumer products;
Brunswick billiards tables and foosball tables. For more
information, visit http://www.brunswick.com/. DATASOURCE: Brunswick
Corporation CONTACT: Daniel Kubera, Director - Media Relations and
Corporate Communications of Brunswick Corporation, +1-847-735-4617,
Web Site: http://www.brunswick.com/
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