Brunswick Corporation (NYSE:BC) saw its stock gain 2.2% in premarket trading Thursday following the company’s announcement of a global consolidation of its fiberglass boat manufacturing operations aimed at cutting fixed costs and boosting efficiency.
The company plans to close its Reynosa, Mexico plant, which produces primarily small, value-oriented fiberglass boats, shifting production to U.S. facilities in Vonore, Tennessee, and Merritt Island, Florida. Additionally, Brunswick will shutter its Flagler Beach, Florida plant and consolidate operations into the Edgewater, Florida facility.
“The decision to transition production out of Reynosa, Mexico… reflects evolving market dynamics that are impacting industry-wide volumes of value fiberglass products,” said Brenna Preisser, President of Brunswick Boat Group. The company expects these transitions to be fully completed by Summer 2026.
As part of the restructuring, Brunswick is investing $5 million in capital improvements at its Tennessee and Florida plants, creating more than 200 U.S. manufacturing jobs over the next few years. The company emphasized it has sufficient capacity to absorb volume, support future market rebounds, and capture additional market share.
The consolidation aims to achieve a more efficient cost structure and enhance Boat Group profitability, according to Preisser. Brunswick is working closely with local governments and economic development partners to facilitate the transition, offering employees at Flagler Beach opportunities to transfer to the Edgewater location.
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