MERRITT ISLAND, Fla. - Sea Ray, which manufactures high-end yachts at its Sykes Creek facility on Merritt Island, is shutting down in June putting more than 200 people out of work.
Local 6 news partner Florida Today reports Sea Ray's parent company, Brunswick Corp. made the announcement late Monday as part of plan to consolidate manufacturing at its facility in Palm Coast.
"Difficult as it was, this action was a necessary step to match capacity with market demand, position Sea Ray for success with new yacht product development programs, and work toward our near-term operational and financial objectives," Brunswick Chairman and Chief Executive Officer Dusty McCoy said in a statement to Florida Today.
The Brunswick Boat Group's product development and engineering center, located adjacent to the Sykes Creek plant, will remain. In addition, BBG will continue to use the existing customer reception facilities, sales and customer service offices, and wet slips located on the Merritt Island campus.
The Sykes Creek plant, which currently manufactures Sea Ray and Meridian yachts and motor yachts from 51 to 61 feet in length, currently employs approximately 205 people in manufacturing. The company said it's evaluating job opportunities for Sykes Creek personnel to either transition to production to Palm Coast or at other Brunswick manufacturing facilities.
When the consolidation is completed, Brunswick estimated it will result in annual savings of $3 million to $5 million beginning in 2014. Restructuring and impairment charges of $6 million to $8 million are expected to be recognized as a result of this action in 2013.
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