Bayliner Boats - Boat Plant Closing

Hi gang, Rick Ostler here bringing you Bayliner Boats and news from the boating industry. Disturbing news coming out of of Bucyrus, Ohio.

Brunswick Corp., the parent of Mercury Marine in Fond du Lac, said Thursday that it plans to close a Baja boat plant in Bucyrus, Ohio, eliminating 285 jobs, and sell some of the assets of the Baja business.

Brunswick said it signed a letter of intent to sell certain assets relating to the Baja boat business to Fountain Powerboat Industries Inc., of Washington, N.C. Terms of the agreement were not disclosed, and completion of the sale is subject to certain conditions.

In preparation for the transition, Brunswick will close the plant by the end of May. Pre-tax costs associated with the plant closure are estimated at $10 million to $15 million.

"This was a strategic decision to further refine our product portfolio and best focus our resources on brands and marine segments that we believe are core to our success going forward," said Brunswick chairman and CEO Dustan McCoy.

Brunswick said it will work to transfer as many of the affected employees to other Brunswick plants or to Fountain's facilities. Employees who are not transferred will receive severance pay.

In addition, it was also disclosed this week that Brunswick's Sea Ray boat subsidiary in Merritt Island, Fla., will lay off 400 employees at its plant, 50 more than previously reported.

In February, the company reported it would lay off 350 employees at the facility because of the sagging economy and slower demand for boats. However, the Florida Agency for Workforce Innovation reported Wednesday the company plans to layoff 400 employees between May and July.

The company says in a statement it will be able to move some of those employees to other plants as it relocates the production of some of its boat models. Two of Sea Ray's other Merritt Island facilities -- a product development and engineering facility and a manufacturing plant -- will not be affected by the layoffs. In February, the company reported the net job loss would be 80.

Lake Forest, Ill.-based Brunswick (NYSE: BC) is a manufacturer of recreational products, including Mercury and MerCruiser marine engines; Bayliner, Boston Whaler, Crestliner, and Sea Boss boats; and Brunswick bowling equipment and billiards tables. Its Mercury Marine marine engines business is based in Fond du Lac and its Brunswick billiards business is based in Bristol.

Thanks to The Orlando (Fla.) Business Journal, a sister publication of The Business Journal Serving Greater Milwaukee, contributing to this report.

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Rick Ostler, Bayliner Boats.