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OMC Closes 2 Plants
24 Sept. 1998

OMC To Close Its Milwaukee And Waukegan Facilities

OMC Press Release
24 Sept. 1998
WAUKEGAN, Ill., Sept. 24 - Outboard Marine Corporation (OMC) today announced that it will close its manufacturing facilities located in Milwaukee, Wis. and Waukegan as part of the company's efforts to improve manufacturing efficiencies and delivery to customers. The company said the closure of each facility will take place over the next two years as it prepares to move the operations currently within those facilities to other manufacturing sites.

"OMC has been a leading manufacturer of marine engines and accessories for many decades," said David Jones, OMC president and chief executive officer. "However, in recent years, the marine marketplace has become increasingly competitive, and the current structure and design of our manufacturing system has kept us from responding more aggressively to the ever-changing markets in which we compete.

"With the closure of our Milwaukee and Waukegan based operations, we can improve the overall efficiencies of our manufacturing system, maximize our productivity, reduce product costs, strengthen our competitive position in the market and improve delivery to our customers," said Jones.

According to Jones, over the past year, the company undertook a strategic initiative to study and evaluate of all its existing operations and facilities in an effort to determine steps that should be taken to improve operating efficiencies, maximize manufacturing assets and resources, and reduce overall manufacturing costs. The study included a review of each of OMC's facilities located worldwide.

"As a result of our study, we concluded the manufacturing operations currently being done at our Milwaukee and Waukegan facilities must be consolidated into other facilities," Jones added. "This consolidation also will eliminate duplication of operations and improve our manufacturing economies of scale," Jones added.

Jones pointed out that the company will be working closely with its employees, union representatives and government officials associated with each of these facilities to facilitate the closures and reduce the overall impact on all affected by this action.

Outboard Marine Corporation is a leading manufacturer and marketer of marine engines, boats, accessories and FICHTŪ fuel injection - the industry leading low-emission engine technology.

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