Brunswick Corporation has announced it will expand its manufacturing presence in North Carolina with the purchase of a boat manufacturing facility in Navassa, N.C., near Wilmington.
The Navassa site will offer Brunswick additional and needed capacity to build larger boats as well as the ability to manufacture several brands of cruisers at the facility, increasing production flexibility, productivity and efficiency.
"The market segment for boats 45 feet and above is growing, and we are stretched for capacity," explained Dustan E. McCoy, Brunswick's chairman and chief executive officer. "The Navassa facility, with its ample space and deep water access, will help Brunswick meet this demand, particularly for our popular Meridian Yachts, which is one of the brands we intend to produce at this facility. We will also transfer Salisbury production of Bayliner and Maxum cruisers to this plant, where we will have the ability to more easily adjust model production to demand by more efficiently utilizing common manufacturing capabilities."
"We are pleased to be expanding Brunswick's presence in North Carolina, where we already have several manufacturing facilities," McCoy continued. "With its maritime heritage, skilled marine work force and hospitable business climate, our partnership and presence in North Carolina are highly valued by Brunswick."
Located at the juncture of the Brunswick and Cape Fear rivers, the plant offers deep water access -- important for testing and efficient delivery of large boats -- and more than 336,000 square feet of existing production space. The site's 60 acres also offer room for further expansion, McCoy noted.
"We hope to retain the current Navassa work force of approximately 250, and plan to add employment as we ramp up production," McCoy said. "Within five years, we anticipate that Brunswick will employ more than 850 people at the Navassa facility, and the total retail value of the plant's anticipated annual production will be among the highest of any boat plant in the world."
Transfer of cruiser production
Initially, Brunswick will produce Bayliner and Maxum cruisers at the Navassa site, which will improve efficiencies and reduce costs. It will also offer better geographic balance for Bayliner cruisers, now made largely on the West Coast.
"We also will transfer cruiser production from our Salisbury, Md., plant to Navassa, which will precipitate the closing of the Salisbury manufacturing facility," McCoy said. "Unfortunately, this move will eventually eliminate 180 production and support positions in a phased shutdown at Salisbury, expected to be completed in 2008."
"While we regret having to take this action in Salisbury, we recognize the need for more efficient and cost effective manufacturing," McCoy said. "This decision is no reflection upon the Salisbury work force or product, but the result of our need to better serve our markets with a more efficient manufacturing footprint, while building long-term value for our shareholders."
Larger Meridian Yachts Planned
"Part of building that value means pursuing market opportunities, and we plan to put this additional manufacturing capacity to good use by expanding production of our popular Meridian brand of yachts," McCoy said. "Currently, Meridian is produced exclusively at our plant in Arlington, Wash., and we are at capacity. We will use the Navassa plant to increase capacity, manufacture larger models we plan to introduce, and better balance our production geographically by making some boats closer to our dealers in the East and Midwest."
"We are particularly excited because Navassa will provide the manufacturing space to allow us to build larger Meridian sedan bridge and pilothouse models in the 48- to 65-foot range," McCoy said. "Since its introduction in 2002, Meridian has developed a loyal following. We want to retain those customers, offer them choices as their boating needs change and also attract others to the boating lifestyle. Combined with our Arlington facility, which will see little change in its production volume, our Navassa plant will help us to grow Meridian and better serve the large boat market segment."
