Mercury Marine consolidation on schedule
By IBI Magazine
Mercury Marine is proceeding with plans to consolidate operations from its MerCruiser facility in Stillwater, Oklahoma to its headquarters in Fond du Lac, Wisconsin. The company told IBI that the move is scheduled to be complete by the end of 2011. "More than 50 per cent of the casting operations in Stillwater has already moved to Fond du Lac," said Steve Fleming, company spokesman. "The transition has been smooth and productive." The company will complete the transfer of casting operations, while also transitioning machining work. It will be followed by engine assembly. The transition has also allowed the company to rehire workers. More than 500 workers were "on layoff" last summer, and that number has declined to less than 100. "We continue to prepare the company to be ready and capable of taking advantage of upturns in the industry when they occur," he said. Mercury was provided with a US$53m incentives package by the county to keep 1,500 in Fond du Lac. The county made a US$20m low-interest loan to Mercury in December. Fleming said Mercury will meet the job growth requirements mandated in the financial agreements as the market improves. "We're doing the things we need to do to grow our share further," he said. Mercury is making "great progress improving our break-even point," Fleming said. "The marine industry anticipates another challenging year, but Mercury has cut costs, decreased inventory and implemented changes that will enable us to be more nimble and efficient."
(12 January 2010)
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