Hatteras Yachts to Move CABO Yacht Production to North Carolina to Lower Costs and Solidify, Extend Segment Leadership
NEW BERN, N.C., July 20 /PRNewswire/ — Hatteras Yachts, a unit of Brunswick Corporation (NYSE: BC), today 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 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.”
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.
About Hatteras and Cabo
Hatteras Yachts, a unit of Brunswick Corporation, is recognized as a world leader in the construction of convertible sportfishing and luxury motoryachts. Based in New Bern, N.C., Hatteras pioneered the production of large offshore fiberglass powerboats with the introduction of its first model in 1959. Hatteras builds luxury motoryachts from 60 to 105 feet and sportfishing convertible yachts from 54 to 77 feet. For more information, visit www.hatterasyachts.com. Cabo Yachts has enjoyed a well-deserved reputation as one of the world’s top builders of sportfishing boats from 32 to 52 feet for nearly 20 years. For more information, visit www.caboyachts.com.