(Source: The News & Observer)
By Jonathan B. Cox, The News & Observer, Raleigh, N.C.
Oct. 10--Beleaguered boat maker Brunswick Corp. said Thursday that it will shut down four plants, including one near Wilmington, as part of a cost-cutting effort that will trim more than 1,400 jobs.
By year's end, the company will close a factory in Navassa that it purchased in 2007 after state and local governments offered $4.6 million in incentives. About 270 people will lose their jobs at the facility, which could eventually reopen if the market rebounds.
The closure means Brunswick will miss out on the bulk of the incentives, which are tied to hiring and salary goals.
"We are living and working in the most turbulent economic times in recent history," Brunswick Chief Executive Officer Dustan E. McCoy said in a statement. The weak economy has eroded demand "for boats and engines these past few months at a swifter pace than originally anticipated."
The announcement, which sent the manufacturer's stock to a more than 15-year low -- comes four months after the suburban Chicago company said it would eliminate 1,000 jobs because of the falling demand for recreational boats amid a poor economic environment.
A Hatteras Yachts plant in Swansboro closed earlier this year as part of the previous cuts.
Brunswick still maintains production facilities in New Bern, where it also makes Hatteras Yachts, and in Edenton, where it makes Albemarle boats.
In addition to mothballing the Navassa plant, Brunswick will permanently close plants in Pipestone, Minn.; Roseburg, Ore.; and Arlington, Wash.
Brunswick slid $1.88, or 19 percent, to $8.12. The shares have lost 52 percent this year.
Staff writer Jonathan B. Cox
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