K2 Inc. announced plans to discontinue manufacturing and distributing snowshoes from its Grand Junction, Colorado facility effective end of March, 2004. This facility is one of two U.S. plants that manufactures and distributes snowshoes for the recently acquired Atlas Snow-shoes, Tubbs Snowshoes and Little Bear brands.
Over the next five months, and in time for July, 2004 shipments, K2 intends to transfer manufacturing operations to its facility in Guangzhou, China where it currently sources and produces a number of other sporting goods products including both K2 and Ride skis and snowboards. Distribution of snowshoes for the western half of the U.S. will be consolidated in its distribution facility near Seattle, WA.
K2 will continue to domestically manufacture snowshoes in the U.S. at the companys facility in Stowe VT, where most of the Tubbs brands products are produced. An east coast distribution center will be maintained in Vermont. There will be no additional consolidation decisions made until after K2 has had an opportunity to evaluate the effect of the changes now being implemented.
Over the past two years K2 has successfully transitioned a number of products from various U.S. manufacturing locations to China and has seen not only cost reductions but quality improvements as well. K2s resources at the 1.3 million sq. ft. factory are fully integrated and include engineering, injection molding, tooling, product graphics, and quality control.
The decision to leave Grand Junction is part of an overall K2 strategy to continuously streamline its operations to be more efficient and at the same time recognize the changing needs of the marketplace.
