LaCrosse Footwear, Inc. plans to move into a new Danner factory in Portland, Oregon. The new Danner facility will be located in an industrial building approximately one mile from the company’s corporate headquarters. The new factory will be approximately 59,000 square feet, representing twice the square footage of the company’s existing Portland-based factory which is being replaced.
“Our new, world-class production facility will significantly increase our capacity to meet the growing worldwide demand from our many customers in the work, military, law enforcement, outdoor recreation, hunting and Japanese markets who depend on our U.S.-manufactured Danner footwear being crafted to the very highest standards,” said Joseph P. Schneider, president and CEO of LaCrosse Footwear, Inc. “Danner is an iconic brand, whose boots have been hand-crafted in Portland since 1933, incorporating the highest standards of design, materials and construction. Our new facility will enable us to extend this great tradition of superior craftsmanship.
“Furthermore, we expect this state-of-the-art facility will allow us to continue to innovate with new footwear designs and production processes by expanding our overall capabilities and capacity. The new factory will also improve our operating efficiencies by incorporating the latest lean manufacturing techniques to meet at-once demand. This is an important step in the continued growth of our business.”
The new facility’s lease is scheduled to begin during the second quarter of 2010 for a term of approximately five years, with options to extend the lease for up to 15 more years. DP Partners is serving as the developer for the project. LaCrosse expects to begin production in the new facility in the third quarter of 2010. During 2010, the company expects total capital expenditures to be approximately $8 to $9 million, which includes leasehold improvements and machinery for the new factory facility. During the transition period from the current factory to the new facility, the company plans for certain one-time costs of approximately $0.5 million, which are expected to be included in its operating expenses in the second and third quarters of 2010.
