Crestliner Closing Plant in Little Falls

[bassNspear]

heard today crestliner is closing the plant in little falls.

Deep v's gonna be built in New York Mills

Mods going to be built in Lebanon at the Lowe Plant

Pontoons going to be built at kayot plant.

Really tough times in boating industry, and the town of little falls!

[Spearing Machine]

That doesn't sound good at all!! Having grown up there the two boat companies (Larson/Glastron and Crestliner) were two of very few places of employment. The long range outlook isn't going to be looking too good. Hopefully something good will happen to my childhood home.

[gregg52]

BE interesting to see how crestliner changes..if it does

it was always weld no riverts like those LUNDS

[Kevin Turner]

Bummer for Minnesota & Little Falls :-(

Brunswick Corp. today announced it will consolidate a portion of its aluminum-boat production as part of its ongoing efforts to be more agile and responsive to market demand.

During the next several months, Brunswick will transfer production of its Crestliner and Triton aluminum brands, now built in Little Falls, Minn., to three other manufacturing plants. As a result, the company said, the Little Falls facility will close sometime this fall.

Production of Crestliner and Triton fishing boats 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 their dealer networks will remain intact, and the change is expected to be transparent to the dealers, the company said.

The Little Falls facility will begin to ramp down production in May. As many as 50 percent of Little Falls' current jobs could be transferred to the New York Mills or Lebanon facilities.

Brunswick spokesman Dan Kubera said the move will mean about 90 of the approximately 180 production positions will be terminated in Little Falls, while the rest could be transferred to other plants.

"We do anticipate that many of the people now in Little Falls will be offered roles in those plants, as a reflection of their capability and to provide continuity for the brands which are not affected by this announcement," Kubera said.

"For the past several years, we have worked hard to institute more flexibility into our boat-making capabilities," chairman and CEO Dustan E. McCoy said in a statement. "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."

"While consistent with our manufacturing strategy, such decisions are always difficult," McCoy added. "This decision does not reflect upon the Little Falls work force 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."

Tim Conder, an analyst with Wells Fargo Securities, said this latest move by Brunswick was not surprising and appears to be part of an already communicated restructuring plan.

"We have been anticipating consolidation of the aluminum production for over a year," he said. "We continue to believe [brunswick] is well-positioned to expand its lead … in the industry as the recovery unfolds in '11."

This week, Brunswick reported a 22 percent drop in net sales for the fourth quarter of 2009, including a 38 percent decrease in net sales in the boat segment.

Brunswick reported net sales of $657.3 million for the quarter, down from $837.7 million in the year-ago quarter — a net loss of $124 million, or $1.40 per diluted share, compared with a net loss of $66.3 million, or 75 cents per diluted share, for the fourth quarter of 2008.

Today's announcement is the most recent plant closure by Brunswick. In May 2008, the company announced it would close four plants in the coming year, in addition to eight plants it had previously closed. At that time, the company said this would bring the total number of plants to 17 or fewer by 2009 and would reduce the company's fixed-cost structure by $300 million.

[JohnMickish]

That is bad news for the 90 or so that won't get to transfer. Sorry to hear that.

[bassNspear]

ya beat me to it kevin. was just coming to paste that here

[solbes]

Major bummer. I drive through Little Falls all the time knowing they make a lot of great boats there. Hopefully they treat the employees with respect throughout the process.

[ANYFISH2]

WOW, will it ever end for the folks in this community? I can only hope something good happens for them. It will be interesting how many people actually pick up thier family and move. Tough decision to make! This news sucks!!

[slammer]

Unfortunatly it is a sign of the times. Alot of boat builders out there and the way the economy is you had to figure someone wouldnt make it. To bad it had to be here in Minn. Hopefully things turn around soon for those being let go.

[shamalex72]

This is from the Morisson County Record HSOforum.

Crestliner Boats in Little Falls will be closing its doors this fall.

Crestliner closing in Little Falls

Matt Perkins

Staff Writer

Weeks after the good news about Larson Boats was announced, the bad news hit about Crestliner.

Brunswick Corporation announced today that it will be closing its Crestliner Boat manufacturing facility in Little Falls this fall.

The company said it will gradually transfer the boating production in Little Falls to plants in New York Mills, Lebanon, Mo., and Fort Wayne, Ind. The Little Falls facility will decrease its production beginning in May, and is expected to completely close down sometime this fall.

"It's devastating," Little Falls Mayor Cathy VanRisseghem said. "Devastating for those who may lose their jobs and those who may have to leave town. It's devastating for the community."

Currently, Brunswick's Little Falls facility, which builds both Crestliner and Triton aluminum boats, employs 180 people. A year and a half ago, the company employed around 400.

Brunswick Chairman and CEO Dustan E. McCoy said that since 2007, when the global marine market entered into an extended downturn along with the nation's economy, the company has been restructuring to place its manufacturing footprint in line with consumer demand.

A footprint which was once based on manufacturing facilities dedicated to brands has shifted to plants which focus on "category-type" production.

"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."

Morrison County Community Development Director Carol Anderson said she and the city extended financial assistance to Brunswick, but said the company had already made up its mind about leaving town.

"It's another loss for the community," Anderson said. "We had one saved here last week, and now we got a loss.

"We'll have to wait and see how it all plays out; see if someone else wants to come into town," she said.

Anderson said due to the size of the facility, it's not going to be easy to find a company that can fill the space considering the current economic climate.

VanRisseghem reluctantly agreed.

"Why new York Mills?" she asked. "This is a better building, the people there have been building Crestliner boats for years and it has a central location. It's hard to understand."

But community leaders have to move forward now, VanRisseghem said.

"We will aggressively seek a new business for this area," she said. "There's not a lot of moving going on right now, but that's not going to stop us. We'll do everything we can."

[bassNspear]

what you goin to do bud?

[shamalex72]

I havn't decided yet.

[bassNspear]

gota be a tough one for you?

[swampbuck]

Troy sorry to hear the news. I will let you know if I hear of anything, I am still looking myself.

[shamalex72]

Thanks John, it's going to tough to find a decent job around here now. Hopefully things will pick up.

[harvey lee]

Yes, that stinks for all involved. Hopefully something will come to town in the furure for Little Falls.

[bassNspear]

sham, ill keep a eye open for you! Shoot me a email when you get time!