Luhrs announces it will close local plant

Luhrs announces it will close local plant

Boat manufacturer to relocate operation to New Jersey

From Staff
Publication Date: 10/26/08


Mainship Corp. and Luhrs Corp. have announced they will close their St. Augustine plant and relocate their operations to Luhrs Marine Group's existing Millville, N.J., production facility.

Ninety employees remained on the payroll after 73 workers were laid off in July during the marine industry's "most difficult time ever," President Roger Yarborough said at the time.

During more prosperous times a few years ago, 250 employees were on the St. Augustine payroll, said Yarborough.

The transfer of tooling from St. Augustine to Millville will begin immediately, the company announced.

The decision announced Friday was made by brothers John and Warren Luhrs "after an 18-month critical evaluation of the production and cost efficiencies that would be realized by the centralization of the Power Boat Division in Luhrs Marine Group's southern New Jersey manufacturing facility," the company announced.

Hunter Marine -- the group's fifth company, located in Alachua -- as well as UK-based Luhrs Marine Ltd., will continue their present operations at their existing locations.

"We had been studying the benefits to our product lines, our present and future boat owners, and to our employee ownership by combining production, product support, sales and marketing responsibilities that have, historically, been autonomous," Warren Luhrs said. "John [Luhrs] and I -- together with Rick Cerami, chief executive officer of Luhrs Marine Group and our general managers -- concluded that our companies will be significantly strengthened by the centralization of design, engineering, manufacturing, parts fabrication, purchasing, and customer service at our Millville plant.

"The decelerated economy, in combination with our previous planning, has enabled us to implement our relocation and centralization planning and become a stronger group of boat-manufacturing companies."

The company expects "enormous efficiencies" as a result of the centralization -- most notably in design, engineering and in purchasing.

In their Friday announcement, John and Warren Luhrs said Luhrs and Mainship models will be manufactured concurrently with Silverton and Ovation units starting in January.

"Centralizing the design and engineering responsibility for all four powerboat lines at the Millville facility will not only enlarge the pool of exceptional talent available to Luhrs, Mainship, Silverton, and Ovation; it will encourage a sharing of technology among lines and models so that every Luhrs Marine powerboat will enjoy an increase in utility, performance, and comfort," said Cerami. "It's also easy to understand how Luhrs, Mainship, Silverton, and Ovation will be able to control and, in many cases, contain the cost of raw materials and equipment."

The "temporary layoff" announced in July was set up to run from Aug. 11 to Jan. 5.

"We understand a temporary layoff will create hardships for the individuals involved, but it is unfortunately unavoidable," Yarborough told the employees. "We have always been a partner with St. Augustine, and we are committed to working with the St. Augustine community for our mutual continued success."

Forty years ago, in December 1969, the Luhrs brothers acquired Silverton Sea Skiffs - a Toms River, N.J.-based powerboat builder. The brothers' "roots," in actuality, extend much farther back in boatbuilding: to the 1930s, when their father, Henry Luhrs, began producing wooden sea skiffs in the coastal town of Morgan, N.J.

"We didn't intend that this first major step in the Luhrs Group's 'Plan for the Future' would coincide with the 40th anniversary of the group's beginnings in New Jersey," John Luhrs said. "But we think our father would be pleased."


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