Palmer Johnson Yatchs Shuts Sturgeon Bay, Moves to Europe
By Aiswarya Lakshmi
Friday, September 4, 2015
Luxury yacht manufacturer Palmer Johnson Yachts is closing its production facilities in Sturgeon Bay because of dwindling sales and competition from overseas.
In a plant closing notice filed Wednesday with the Wisconsin Department of Workforce Development, the company said sales had fallen and offshore competition had escalated.
The closures will result in the loss of about 100 jobs. Palmer Johnson said it will cooperate with the Department of Workforce Development to help employees find other jobs.
The shutdown will take place in phases starting about Oct. 31. "We are disappointed and saddened by this business closing, and yet realize that there is no alternative," the company said.
Production is being moved to the Netherlands under a deal that the company said would give it a better competitive advantage.
It also says its SuperSport range yacht has received a lot of interest. The company claims the move to Europe will give it a better competitive advantage in the industry.
The relocation is part of Palmer Johnson's plan to increase production of a SuperSport series of yachts, the company confirmed Thursday.
Yacht building is an important niche industry in northeast Wisconsin, where the brands include Palmer Johnson, Carver, Marquis, Burger, Cruisers and Rampage. The industry also supports dozens of suppliers, including companies in the Milwaukee area.
Palmer Johnson Yachts Inc. owner Timur Mohamed stated "Our operation and employment levels have continued to diminish, sales have diminished, offshore competitive pressures have escalated, and as a result this action becomes a necessity. We are disappointed and saddened by this business closing and yet realize that there is no alternative."