Posted on 02/20/2005 9:31:59 PM PST by ServesURight
Mercury Marine to open plant in China
Company says move won't necessarily mean job cuts in Fond du Lac
By RICK BARRETT
rbarrett@journalsentinel.com
Posted: Feb. 17, 2005
Miami - Mercury Marine Inc. is opening a new factory in China in about two weeks, the Fond du Lac outboard engine company said Thursday.
The $30 million plant will produce four-stroke engines that are commonly used on recreational boats and small commercial boats.
"We are making a lot of these engines in Fond du Lac at the moment," company President Patrick Mackey said in an interview at the Miami International Boat Show.
The six-day show is one of the world's largest marine industry events, with more than 2,200 exhibitors. It opened Thursday and is expected to attract 150,000 spectators.
Mercury currently manufactures some engine components in China and is shifting production of 40- to 60-horsepower four-strokes to the new factory near Beijing. The decision to move more manufacturing to China was driven partly by economics, Mackey said.
"We wanted to make an engine at the lowest possible price, and China seemed to be a place that we should be for the future," he said.
Better economic position
Mercury has opened a new factory in Japan, in partnership with Tohatsu Corp., to build small Mercury outboards. The first engines rolled off that assembly line about three weeks ago.
"Our strategy is to get the smaller engines into the best economic position we can," Mackey said. "North America is difficult when you consider the cost of labor, health care and other things here."
Mercury is one of the Fond du Lac area's biggest employers. But as some engine production is shifted to Asia, it won't necessarily result in job losses in Wisconsin, according to Mackey.
Some employees won't be replaced when they retire, he said. And the work that's headed to the new China factory from Fond du Lac is being replaced by the production of Mercury's new Verado outboard engines, which are more expensive and have more sophisticated technology than the smaller engines.
"All of the high-tech products will stay in America," Mackey said. "That's where we have the edge here."
BRP Inc., which makes Johnson and Evinrude outboard engines in Sturtevant, on Thursday announced a new 115-horsepower two-stroke engine at the boat show.
The E-TEC engine runs cleaner than many four-strokes and has better performance, said Roch Lambert, vice president and general manager of BRP's outboard engine division.
Mercury introduced three Verados, from 135 to 175 horsepower, at the show. The company said it will no longer make conventional two-stroke engines for the U.S. market.
Production of the older two-stroke designs will end by June, Mackey said, as the company places more emphasis on four-stroke engines and direct-injection two-strokes.
Cruisers Yachts of Oconto introduced a 38-foot motor yacht at the boat show. As one of three Wisconsin yacht builders, Cruisers is experiencing a labor shortage. The Oconto area has only about 30,000 residents within 30 miles of the Cruisers headquarters and plant, said Russ Davis, company special projects director.
"We have worked ourselves out of a work force in Oconto," he said. "It sounds crazy, but we can't find enough people."
"Bush isn't doing enough to promote a more business-friendly America."
Bush hasn't done anything to promote friendlier business environment.
:sigh: Why aren't we giving Chinda the same treatment that South Africa got back in the eighties? Just wondering aloud.
Heh, when China's ruling thieves float the yuan against the USD it won't seem like such a great deal.
Could be that the people figure they'd be crazy to work there if you're offering minimum wage, which is highly likely...
Paging John Kerry and Teresa.
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