Johnson Outdoors plans to outsource manufacturing at its Grand Rapids, Michigan facility, and to shift production from Mansonville, Canada to its Old Town, Maine operation, as part of the Companys on-going efforts to increase efficiency and improve profitability of its Watercraft business unit. Costs and charges associated with these plans are estimated at $3.0 million and will be incurred across fiscal years 2004 and 2005.
The decision will result in the reduction of 69 positions across the two locations. The Company is providing severance and outplacement assistance to those affected by these plans.
“As we work to build a sustainable and profitable enterprise long-term, we must balance todays realities with the future needs of our businesses,” said Helen Johnson-Leipold, Chairman and Chief Executive Officer, Johnson Outdoors. “Watercraft will be leaner, yet more flexible, more focused, and more competitive going forward and better prepared to deliver financial performance equal to the strength of our winning brands.”
Johnson Outdoors has contracted with KL Industries of Muskegon, Michigan to manufacture its Escape®, Waterquest® and Rogue River branded products. KL is the water recreational products division of Ameriform, a vertically integrated plastic products company with QS-9000 certification. Ameriform currently employs 250 people across four operating divisions, and expects that number to increase as it begins production of Johnson Outdoors Escape®, Waterquest® and Rogue River products.
“Continuous innovation, consistent high-quality and outstanding customer service are our commitment to customers and consumers,” said Jerry Perkins, Chief Operating Officer, Johnson Outdoors. “KL Industries reputation and track record for excellence made them the clear choice for helping us continue to meet the marketplace expectations for quality of these fine Johnson Outdoors brands.”
