Skip to main content

Brunswick will close boatbuilding plant in Brazil

Brunswick Corp. said today that it will immediately start to wind down its boat manufacturing operations in Brazil.

Brunswick Corp. said today that it will immediately start to wind down its boat manufacturing operations in Brazil as the country continues to face challenging economic conditions.

The Joinville, Santa Catarina, plant will be shut and the production of certain Bayliner and Sea Ray models being built there for the South American market will be moved.

"The region's continued weak economy has made it difficult to profitably serve these markets with a dedicated manufacturing facility," Brunswick Boat Group president Huw Bower said in a statement. "With our existing commercial infrastructure and channel presence, we can return to our previous model of importing boats to the region to more efficiently and effectively fulfill demand to this important market."

The company did not immediately say where those boats would be manufactured, but said their production will be moved to Brunswick’s “remaining global boat manufacturing footprint.”

“We will return to our strategy of importing boats from other facilities within our manufacturing footprint to fulfill demand in the region,” Brunswick spokesman Daniel Kubera told Trade Only Today. “Those details have yet to be finalized. In the interim we will concentrate on winding down operations in Joinville, including the completion of in-process boats, and helping our employees through this transition.”

The company said the resulting restructuring charges are estimated to be in the range of $10 million to $12 million pretax, substantially all of which will be recorded in the first quarter this year.

Further, the shift is projected to have a modestly positive impact on earnings and a minimal impact on free cash flow, with the majority of the earnings benefit occurring in 2018.

Brunswick said the decision has no impact on its strategy or plans for its Mercury Marine business or life fitness business in the region.

“Though the region's economy continues to be challenging, its effects have been more pronounced on the boat business,” the company said.



Dometic Posts Sales Increase for Q4

Net sales of $596 million were up 11% compared with the previous-year quarter, and profit was reported at $2.6 million.


Marine Marketers to Present Neptune Awards

The group will hand out its annual honors during the Miami International Boat Show in February.


MarineMax Releases Q1 2023 Results

Record revenue of $507.9 million was a 7% increase over the previous year, and the growth was driven primarily by acquisitions, including IGY Marinas.


Volvo Penta Reports Q4, FY22 Results

Net sales of $470 million for the quarter were a 33% increase compared to the prior year period.


DEALERS: Are You Improving the Service Experience?

Our monthly Pulse Report survey asks this and other questions about your dealership. Take the survey here.


NMRA Sets Scholarship Deadline

Students pursuing education in the marine trades can apply for the National Marine Representatives Association awards until April 1.


Marine Products Reports Record Q4

The builder of Chaparral and Robalo boats reported net sales were up 42% for the quarter and 28% for fiscal year 2022.


Shurhold Appoints COO

Forrest Ferrari has years of management, business development, IT and quality-assurance experience.