Hatteras Yachts, a unit of Brunswick Corporation (NYSE: BC), has announced that it will consolidate production of both its Hatteras Yacht and CABO Yacht brands at its facility in New Bern, N.C. CABO Yachts are currently made in a plant in Adelanto, Calif., which will be closed by the end of the year as that production is phased down and migrated to the New Bern facility.
“Bringing our brands under one physical roof will allow us to fully leverage our technological and operational advantages, better serve our dealers and customers, reduce fixed costs and more effectively use our available manufacturing capacity,” explained Hatteras President James R. Meyer.
“Despite the currently difficult marine market, we have been investing aggressively in developing new products for both CABO and Hatteras, as well as in increasing manufacturing efficiency at the New Bern factory. Building both brands in New Bern will give us new operating leverage at an opportune time,” Meyer added. CABO and Hatteras already share services in New Bern for product design, engineering, marketing, and sales.
The flagship of the sportfishing fleet, the Hatteras 77 Convertible luxury motor yacht
“The move also brings CABO production closer to the majority of our markets, trimming delivery times while allowing some deliveries via waterways, which was not feasible with CABO’s location in Southern California. The consolidation will allow CABO to deliver a more turnkey product, reducing commissioning time, rigging costs and dealers’ financing expense,” Meyer explained.
To help prepare the New Bern facility and workforce to integrate CABO Yachts into production there, the State of North Carolina, along with various Craven County and New Bern governmental entities, will provide economic assistance tied to Hatteras and CABO meeting certain performance measures over the next several years.
“Hatteras has been one of the foremost corporate citizens of New Bern since the 1960s,” North Carolina Gov. Bev Perdue said. “I often work to bring new jobs to North Carolina, but it is equally important to help our existing businesses grow.”
“Combining these two great brands under one roof in New Bern is the next step in how we are preparing for a magnificent future,” said Hatteras President and CEO James R. Meyer. “For the past 18 months, we have been investing heavily in new products and modernizing our factory here, and now, with help from North Carolina, we will be able to fully leverage these investments by completing this move.”
Brunswick, which purchased California-based Cabo Yachts in 2006, will consolidate its West Coast facility into the New Bern site.
CABO employees were informed this morning of the decision to consolidate production. “These decisions are never easy,” Meyer said, “but are required by business realities, and are no reflection upon the dedication and expertise of the men and women at CABO Yachts.” Meyer reported that many members of the CABO manufacturing team and certain managers will be offered jobs and relocation assistance to move to New Bern.
