Published: June 27, 2008 05:10 pm         

Brunswick will close four plants

MerCruiser’s parent company announced a restructuring plan Thursday that will include the closure of four North American manufacturing plants.

The MerCruiser operation in Stillwater manufactures sterndrives for boats, a market that has been weak for three years, Brunswick Corp., leaders said during a conference call. Brunswick is the parent company of Mercury Marine, which operates the Stillwater plant.

“The company plans to have 17 or fewer boat plants by the end of 2009, compared with the 29 it had in 2007,” said a press release issued by Brunswick on Thursday. “This will require the closure of four plants in addition to eight plant closures already completed or announced.”

A question from the NewsPress regarding the plant closures was not accepted by Brunswick officials during the Thursday morning conference call.

Dustan McCoy, Brunswick’s chairman and CEO, said retail demand for boats was down 21 percent in the first three months of the year.

“The April and May results show no relief in these declining trends and, in fact, this decline may be accelerated,” McCoy said during the teleconference, adding the four plants will be closed within 20 months. “Total unit sales of power boats in the United States in 2007 were at their lowest in more than 40 years.”

Wednesday, Mercury Marine officials in Fond du Lac, Wis., announced the Stillwater plant would see the reduction of 130 hourly employees this week. They also said five salaried employees would be subject to “involuntary separation” by the end of July.

The reductions would leave approximately 445 hourly employees and less than 200 salaried employees in Stillwater, down from 1,050 in 2006.

“Brunswick will also continue its efforts to reduce the complexity of its operations, including reducing the number of models and option packages, focusing on those that are popular and clearly resonate with consumers,” read Thursday’s press release, in part. “The company’s efforts also entail assessing the outlook for continued participation in certain market segments across its operations that may not offer opportunities to generate acceptable levels of profitability.”

Daniel Kubera, director of media relations and corporate communications for Brunswick in Lake Forest, Ill., did not respond to a phone message or an e-mail seeking comment.

Steve Fleming, director of communications for Mercury Marine in Fond du Lac, Wis., did not respond to a phone message seeking comment and did not respond to an e-mail asking if the Stillwater plant was targeted for closure.

     

• Click to discuss this story with other readers on our forums.