Brunswick moving Cabo production to Hatteras facility

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Brunswick Corp., announced Tuesday it will consolidate production of its Hatteras and Cabo brands at the Hatteras facility in New Bern, N.C., and close the California plant where Cabo yachts are produced.

The Adelanto, Calif., plant will be closed by the end of the year as production is phased down and moved to New Bern, the company said in a statement. This is the 16th plant Brunswick has closed or is in the process of closing since the end of 2007.

Approximately 40 positions will be lost with the move, Brunswick spokesman Dan Kubera said. Many members of the Cabo manufacturing team and certain managers will be offered jobs and relocation assistance to move to New Bern, the company said in a statement.

"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," Hatteras president James R. Meyer said in a statement.

"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 design, engineering, marketing and sales.

To help prepare the New Bern facility and work force to integrate Cabo production, the state of North Carolina, along with various Craven County and New Bern government entities, will provide economic assistance tied to Hatteras and Cabo meeting certain performance measures in the next several years, the company announced.

"Hatteras has been one of the foremost corporate citizens of New Bern since the 1960s," North Carolina Gov. Bev Perdue said in a statement. "I often work to bring new jobs to North Carolina, but it is equally important to help our existing businesses grow."

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