Brunswick Corporation announces major capacity expansion of Reynosa manufacturing facility – will increase production capability by 60 percent
REYNOSA, Mexico, Dec. 08, 2021 (GLOBE NEWSWIRE) -- Brunswick Corporation (NYSE: BC) has announced the purchase of land in Reynosa, Mexico, adjacent to its current boat manufacturing facility, that will be used to expand its boat manufacturing capacity, adding 150,000 square feet to the current facility, and providing a total of 385,000 square feet of manufacturing footprint for its award-winning Bayliner, Trophy, Heyday, Sea Ray, and Lund brands. The expansion will increase production capability by close to 60 percent. The additional space will be used not only to bolster output but also to increase vertical integration and will support the need to replenish field inventory and fulfill the sustained demand from Brunswick’s channel partners and the rapidly expanding Freedom Boat Club. The expansion will create more than 600 jobs in the local economy. The first boat is expected to come off the line in late 2023.
“Demand for our products continue to exceed supply, and we have an immediate need to increase capacity to meet the needs of our global customers,” said Aine Denari, Brunswick Boat Group president. “This is an exciting step for Brunswick and our Venture Group as we work to meet this strong demand as well as replenish historically low field inventory levels.”
“In addition to providing immediate growth for Brunswick Boat Group, we are creating a large number of high-quality jobs in the Reynosa community over the next few years,” said José Guzmán, Reynosa Plant Manager. “We will continue to work with the city and support the local economy while expanding production for some of our most well-known brands.”
This is the fourth major expansion for the Brunswick Boat Group in 2021 and is consistent with the Company’s announced plans to increase capacity efficiently and cost-effectively. In May, the Company reopened its Flagler – Palm Coast facility for Boston Whaler boats that will expand production capacity for the popular brand by more than 40 percent. The Vila Nova expansion in Portugal is well underway and, over the next three years, will more than double production capacity at that facility, which manufactures Bayliner, Uttern and Quicksilver products for the European market. Additionally, the Company made a recent acquisition near its New York Mills facility in Minnesota to increase production capacity and vertical integration. That facility will be fully operational in early 2022.
Headquartered in Mettawa, Ill., Brunswick Corporation’s leading consumer brands include Mercury Marine outboard engines; Mercury MerCruiser sterndrive and inboard packages; Mercury global parts and accessories including propellers and SmartCraft electronics; Advanced Systems Group, which includes industry-leading brands such as Simrad, Lowrance, C-MAP, B&G, MotorGuide, Attwood, Mastervolt, RELiON, Blue Sea Systems, CZone, and ASG Connect system integrators; Land ’N’ Sea, BLA, Payne’s Marine, Kellogg Marine, and Lankhorst Taselaar marine parts distribution; Mercury and Quicksilver parts and oils; Bayliner, Boston Whaler, Crestliner, Cypress Cay, Harris, Heyday, Lowe, Lund, Princecraft, Quicksilver, Rayglass, Sea Ray, Thunder Jet and Uttern boats; Boating Services Network, Freedom Boat Club and Boat Class. For more information, visit brunswick.com.
Certain statements in this news release are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates, and projections about Brunswick’s business and by their nature address matters that are, to different degrees, uncertain. Words such as “may,” “could,” “should,” “expect,” "anticipate," "project," "position," “intend,” “target,” “plan,” “seek,” “estimate,” “believe,” “predict,” “outlook,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this news release. These risks include, but are not limited to: the effect of adverse general economic conditions, including the amount of disposable income consumers have available for discretionary spending; changes in currency exchange rates; fiscal policy concerns; adverse economic, credit, and capital market conditions; higher energy and fuel costs; competitive pricing pressures; the coronavirus (COVID-19) pandemic and the emergence of variant strains; managing our manufacturing footprint; adverse weather conditions, climate change events and other catastrophic event risks; international business risks; our ability to develop new and innovative products and services at a competitive price; our ability to meet demand in a rapidly changing environment; loss of key customers; actual or anticipated increases in costs, disruptions of supply, or defects in raw materials, parts, or components we purchase from third parties, including as a result of pressures due to the pandemic; supplier manufacturing constraints, increased demand for shipping carriers, and transportation disruptions; absorbing fixed costs in production; risks associated with joint ventures that do not operate solely for our benefit; our ability to successfully implement our strategic plan and growth initiatives; our ability to integrate acquisitions, including Navico, and the risk for associated disruption to our business; the risk that unexpected costs will be incurred in connection with the Navico transaction or the possibility that the expected synergies and value creation from the transaction will not be realized or will not be realized within the expected time period; attracting and retaining skilled labor, implementing succession plans for key leadership, and executing organizational and leadership changes; our ability to identify, complete, and integrate targeted acquisitions; the risk that strategic divestitures will not provide business benefits; maintaining effective distribution; adequate financing access for dealers and customers; requirements for us to repurchase inventory; inventory reductions by dealers, retailers, or independent boat builders; risks related to the Freedom Boat Club franchise business model; outages, breaches, or other cybersecurity events regarding our technology systems, which could affect manufacturing and business operations and could result in lost or stolen information and associated remediation costs; our ability to protect our brands and intellectual property; changes to U.S. trade policy and tariffs; any impairment to the value of goodwill and other assets; product liability, warranty, and other claims risks; legal and regulatory compliance, including increased costs, fines, and reputational risks; changes in income tax legislation or enforcement; managing our share repurchases; and risks associated with certain divisive shareholder activist actions.
Lee Gordon Vice President – Brunswick Global Communications & Public Affairs Brunswick Office: 847-735-4003 Mercury Office: 920-924-1808 Cell: 904-860-8848 Lee.Gordon@Brunswick.com
Released December 8, 2021