Mercury Marine not affected by supply shortages from Japan

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Mercury Marine said it is positioned to continue to meet market demand for most of its outboard and sterndrive engines despite potential supply shortages resulting from the earthquake and tsunami in Japan.

Mercury's small outboards (2.5- to 30-hp) are produced in Japan through a joint venture with Tohatsu Corp. The joint venture facilities in Japan were not damaged by the March 11 earthquake and are not in the region directly affected by the resulting tsunami.

The facilities have continued to operate, using parts on hand to build outboard engines. The joint venture has worked closely with its suppliers to monitor and balance the availability of parts and to minimize disruptions.

Mercury produces engines and parts primarily in North America and Asia. Mercury facilities in North America and China are operating with no current disruptions, the company said. The manufacturing of Mercury's MerCruiser sterndrive packages, which are built in the United States, has been virtually unaffected by supplier problems.

Mercury will increase the production rates of selected product families from April through July to ensure continuity of supply.

Attwood, Land 'N' Sea and MotorGuide have received no indication from suppliers that near-term shortages are anticipated, the company said.

"We join the rest of the world in sending our thoughts and prayers to the people of Japan as they continue the recovery process from these devastating events," Mercury Marine president Mark Schwabero said in a statement. "We were obviously very happy that none of our people were injured, but this is a terrible human tragedy and a huge economic event that impacts the entire world."


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