LAKE FOREST, Ill. – Marine industry giant Brunswick Corp. (NYSE: BC) is closing a Mississippi boat plant in an effort to gain efficiencies by consolidating its operation with that of another of its plants — one in Little Falls, Minn., it suggested in a statement yesterday.
The production transfers, which will result in the loss of approximately 170 positions at its Aberdeen facility over the next several months, will lead to job gains at its Little Falls, Minn., boat production facility, according to the company. Its Aberdeen, Miss., plant will close in early 2008. The Little Falls plans will assume production of Triton aluminum fishing boats now being made at Aberdeen.
“This action is not a reflection on the Aberdeen work force or the Triton brand,” explained Dustan E. McCoy, Brunswick chairman and chief executive officer. “Brunswick remains fully dedicated to the long-term success of Triton’s aluminum boats.”
McCoy added that the move “will help Brunswick accomplish several important objectives.”
“One is to ultimately reduce the size of our manufacturing footprint, seeking to drive more volume through fewer plants that focus on high-volume product categories,” he stated. “This enables us to improve productivity and reduce costs and better utilize capacity as well as allows us to more quickly and efficiently respond to changing market conditions. We also seek to better match the particular strengths and expertise of a manufacturing facility with particular products. The results of which will ensure that consumers can always rely on getting a high quality Brunswick product, and we will have more efficient and effective manufacturing.”
The company stated that costs associated with closing the Aberdeen facility and transferring production to Little Falls are estimated at $5 million, the majority of which will be recognized in the fourth quarter of 2007.
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