Brunswick Corporation Acquiring Rampage Yachts

Creating 858 jobs and investing $51.2 million during the next five years

July 5, 2007

BRUNSWICK COUNTY NC NEWS -- Brunswick Corporation is acquiring the Rampage Yachts boat building facility in Navassa. creating 858 jobs and investing $51.2 million during the next five years. The jobs created by Brunswick will provide employment for area residents that are consistent with the current occupational environment. While the pay for these jobs will vary depending on skills and responsibilities, the overall average wage for all the new jobs is $31,293 a year plus benefits, which is higher than the county average of $30,576. The deep water access of Cape Fear to the Atlantic will allow Brunswick to meet the growing demand for boats 45 feet and larger. Brands the company plans to produce at the plant will include Meridian Yachts as well as Bayliner and Maxum cruisers.

Governor Mike Easley speaking of the acquisition said: "We are proud that Brunswick chose North Carolina as the best location for these jobs. Our state has a boat-building heritage dating back more than 200 years. Brunswick's decision shows that one of the industry's premier companies recognizes our state offers both an experienced workforce and opportunities to make sure those workers have continued training so businesses can grow and succeed."

Headquartered outside Chicago, the Brunswick Corporation, employs more than 27,000 people worldwide with total net sales in 2006 of $5.7 billion. Brunswick makes pleasure boats, Mercury Marine engines, Life Fitness equipment and Brunswick bowling and billiards equipment as well as operates 100 family bowling centers.

A division of the Brunswick Corporation, the Brunswick Boat Group, is the largest maker of pleasure boats in the world with 2006 net sales of $2.8 billion. That group includes boats sold under the brand names Sea Ray, Boston Whaler, Lund Boats, Albemarle, Cabo Yachts and Hatteras Yachts, among others. The company currently employs about 1,500 people in North Carolina, the majority of whom work for Hatteras Yachts, which manufactures all of its boats in New Bern and Swansboro. The company also owns an Albemarle sportsfishing plant in Edenton North Carolina.

Dustan McCoy, Brunswick's chairman and chief executive officer said: "We are pleased to be expanding Brunswick's presence in North Carolina, where we already have several manufacturing facilities. With its maritime heritage, skilled marine workforce and hospitable business climate, our partnership and presence in North Carolina are highly valued by Brunswick."

The state's Economic Investment Committee voted to award a Job Development Investment Grant to facilitate the project. Under the terms of the JDIG agreement, a 10-year grant will be established. Over the life of the grant, the N.C. Department of Commerce estimates the project will generate a cumulative gross state product value of $909.4 million. Thus, producing a positive, cumulative net state revenue impact of $24.2 million. In addition to contributing up to $1.45 million to the state's Industrial Development Fund for infrastructure improvements in economically distressed areas of North Carolina. This contribution is required of grant recipients that locate in the state's more prosperous counties.

For each year the company meets required performance targets, the state will provide a grant equivalent to 60 percent of the state personal income withholding taxes derived from the creation of the new jobs. If Brunswick creates all of the jobs called for under the agreement and sustains them for 10 years, the company could receive a maximum benefit from the JDIG of $4.36 million.

Job Development Investment Grants are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and which would not be undertaken in North Carolina without the grant. Since the first grant was awarded in 2003, the program has been responsible for creating more than 20,000 jobs and $3 billion in investments in North Carolina. Partners who helped make the project possible include the N.C. Department of Commerce, Brunswick Community College, Brunswick County, the Brunswick County Economic Development Commission, the N.C. Small Business and Technology Development Center's Boating Industry Services Division, N.C. Southeast partnership and Progress Energy. For more information about the Brunswick Corporation including job opportunities, visit www.brunswick.com.

Published by:
Rob Cross
mailto:editor@357news.com

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