Brunswick sells Baja Marine

by Gary Ogle Telegraph-Forum on 21 Mar 2008 Baja Marine, a powerboat maker that originated in Bucyrus, has struggled in recent months and the knockout blow for the facility came Thursday, when employees were informed the plant would be closed and is being sold by its parent company, Brunswick, to Fountain Powerboat Industries, Inc., of Washington, N. C.

Employees were informed of the move Thursday and received a letter from Baja president, David Olson. The Bucyrus plant currently employs approximately 285 people.

The Telegraph-Forum received a copy of Olson’s letter to employees and it reads in part, 'As announced today, Baja will be selling certain assets of Baja Boats to Fountain Powerboat Industries, Inc., As a result of that action, we will be permanently closing this plant facility over the next four months, consistent with the end of the 2008 model year.'

Baja had already reduced its work force by 40 jobs in October from the Sea Ray line of boats produced at Bucyrus, and laid off another 42 people in November. According to employees, all but approximately 80 people are expected to lose their jobs in May.

The remainder will stay employed until the plant is completely closed, some time within the following two months.

Olson’s letter verifies the date of lay-off will be May 23 and says those employees continuing to work until then will be 'eligible for a stay bonus, based on years of service . . .'

The letter also says the layoffs will be permanent.

David Williamson, Crawford County Economic Development Director, has been aware of the pending situation. Williamson would not comment on specifics, but acknowledged the impact it would have on the community, one with an unemployment rate already higher than the state average.

'The loss of any job to the community is contrary to what we’re trying to do,' Williamson said, adding his goal has been and will continue to be improving the local job market in terms of numbers and quality of jobs. 'It (a Baja closure) would certainly be a great disappointment to us and we would have to redouble our efforts.'

Baja began operations in 1956 in a facility on Jones Street and has had a history of financial problems mixed in with periods of strong growth and expansion.

The company closed its doors and filed for bankruptcy protection in early 1994. At that time it listed its assets at $13.27 million and liabilities of $18.1 million. It was then the fourth largest employer in Bucyrus.

The plant reopened when Ray Industries took over the company later that year.
Brunswick purchased the company in 1995.

Olson was not available for comment and his secretary referred further inquiries to Brunswick.

A news release from Brunswick through Media Relations and Corporate Communications Director Daniel Kubera, announced the sale to Fountain Powerboats and said, 'Brunswick plans to end production of Baja boats in Bucyrus, Ohio, by the end of May, consistent with the end of the 2008 model year.'

Calling the sale of Baja a 'strategic decision to further refine our product portfolio . . .,' the release quoted Brunswick Chairman and Chief Executive Officer Dustan E. McCoy.

'This action in no way reflects upon Baja or the abilities and performance of the Bucyrus work force. We believe, however, that Baja and its dealers will ultimately benefit from being a part of Fountain Powerboats, a company that, like Baja, is a leader in high-performance boats.'

Reggie Fountain, an accomplished offshore racer, is CEO of Fountain Powerboats, Inc. The company makes sport boats, fish boats and cruisers.

Located on the coast of North Carolina, Fountain Powerboats has a 66-acre site with a 225,000-square foot factory and marina