ATV News Polaris ATV Update Polaris to move manufacturing operations to Mexico.
http://www.polarisindustries.com
MINNEAPOLIS (May 20, 2010) – In an effort to improve its
long-term competitive positioning, increase operational efficiencies and
position the company for future growth, Polaris Industries Inc. (NYSE:
PII) today announced plans to realign its operations and refocus on its
core strategic manufacturing processes. The Company will create
manufacturing centers of excellence for Polaris Products by enhancing
the existing Roseau, Minn. and Spirit Lake, Iowa, production facilities
and establishing a new facility in Mexico.
The Company is
currently evaluating several possible locations in the
Monterrey/Saltillo area of Mexico for the new facility. The realignment
will lead to the eventual sale or closure of Polaris’ Osceola, Wisconsin
manufacturing operations over time. The realignment allows the Company
to dedicate capital for strategic investments in painting, welding and
assembly operations by outsourcing certain non-strategic component
manufacturing processes. The Mexico facility is expected to maintain
Polaris’ industry leading quality while improving the Company’s on-time
delivery to customers and provide significant savings in logistical and
production costs.
“While this was a difficult decision for us,
given the impact on our employees at the Osceola facility, we believe
the creation of these manufacturing centers of excellence will
strengthen our company over the long-term and enable us to maintain our
lead in a competitive market,” said Scott Wine, CEO, Polaris Industries
Inc. “Pursuing opportunities in new markets outside the United States,
while concurrently evaluating our cost structure to improve our
long-term competitive positioning are key components to our growth
strategy. This decision was based on a thorough review of our worldwide
operations and will allow us to improve our ability to meet the quality,
delivery and cost standards desired by our dealers and customers.”
The
realignment of Polaris’ manufacturing footprint will strengthen the
Company’s position in the powersports industry, as it will enable
Polaris to have production facilities closer to customers in the
southern United States and global markets the Company currently serves
or expects to serve in the future. When the manufacturing realignment is
completed the Company will have capabilities to manufacture ORVs (both
ATVs and side-by-side vehicles), which represents more than two-thirds
of the Company’s sales, in multiple locations depending on customer
demand.
Snowmobile assembly will remain in the Roseau facility
and Victory motorcycle assembly will remain in the Company’s Spirit Lake
facility. As part of the manufacturing realignment, certain Osceola
manufacturing processes will be moved into the Roseau, Spirit Lake and
Mexico facilities to more effectively utilise Company resources. In
addition, certain manufacturing processes and equipment are intended to
be sold to suppliers whom will continue to supply components to Polaris.
Other non-strategic component manufacturing operations currently
performed in the Osceola facility will be outsourced. The realignment
will begin immediately and is scheduled to be complete in 2012. The
Company will look to have the new production facility in Mexico
operational beginning in the first half of 2011.
Polaris is
currently in negotiations with several suppliers to sell certain
non-strategic component manufacturing processes and equipment in the
Osceola facility. If successful, Polaris’ intent is that the suppliers
will continue to manufacture these components in the current Osceola
location. Polaris will operate the Osceola manufacturing facilities
during the transition period. Upon completion of the transition, Polaris
will provide the affected employees severance benefits and work closely
with the Wisconsin Department of Labor and other state and local
agencies to offer employment assistance and other services.
About Polaris
With
annual 2009 sales of $1.6 billion, Polaris designs, engineers,
manufactures and markets off-road vehicles (ORVs), including all-terrain
vehicles (ATVs) and the Polaris RANGER™, snowmobiles and Victory
motorcycles for recreational and utility use and has recently introduced
a new on-road electric powered neighborhood vehicle.
Polaris is
a recognized leader in the snowmobile industry; and one of the largest
manufacturers of ORVs in the world. Victory motorcycles, established in
1998 and representing the first all-new American-made motorcycle from a
major company in nearly 60 years, are rapidly making impressive in-roads
into the cruiser and touring motorcycle marketplace. Polaris also
enhances the riding experience with a complete line of Pure Polaris
apparel, accessories and parts, available at Polaris dealerships.
Polaris
Industries Inc. trades on the New York Stock Exchange under the symbol
“PII,” and the Company is included in the S&P Small-Cap 600 stock
price index.
Information about the complete line of Polaris
products, apparel and vehicle accessories are available from authorized
Polaris dealers or anytime from the Polaris homepage at www.polarisindustries.com
published 15/07/2007 |