Production of Select Class A Diesel Motorhomes to Transition to West Coast Facility
FOREST CITY, IA -- (Marketwired) -- 12/01/15 -- Winnebago Industries, Inc.(NYSE: WGO), a leading United States recreation vehicle manufacturer, announced today its purchase of motorhome production facilities and equipment in Junction City, Oregon. In total, the investment to support this expansion is estimated to be between $15-20 million, including land, buildings, necessary modifications, production equipment and technology infrastructure.
Winnebago plans to move production of select diesel products to the 200,000 square-foot facilities, with the transition estimated to be complete sometime in the second half of calendar 2017. Initially, by moving the production of diesel products to the Junction City facility, Winnebago expects to increase its production of Class A gas and Class C motorhomes at the company's headquarters in Forest City, Iowa. In addition, as demand for Winnebago's diesel products increases, the Junction City facility will allow for increased production of diesel products.
"An increase in consumer demand for our motorhomes taxed the Forest City facility's ability to keep up and caused us to look elsewhere to find a location that had sufficient labor capacity to meet those demands," said Vice President of Sales and Product Management Scott Degnan. "We are pleased to be expanding our operations and look forward to the increased production and service presence this new facility will provide on the west coast. We would also like to express our thanks to Ron Lee, the former owner of the facilities, for providing us with this opportunity."
"This purchase is part of Winnebago's ongoing strategy to further solidify the company as a leader in the RV industry for years to come," Degnan continued. "As part of the facility purchase, Winnebago also acquired the intellectual property rights associated with Country Coach and we intend to revive that brand as part of the planned use of the new facility."
In addition, Winnebago entered into an agreement on November 18, 2015, with the Lee Joint Trust to purchase property adjacent to the facility mentioned above. This property was also part of the Country Coach operation in the past. Scott Folkers, Vice President and General Counsel said, "We have begun our due diligence evaluation of the property and hope to have that completed in the near future. We anticipate using this property to provide ongoing customer service to Country Coach owners, as well as providing service to Winnebago owners."
About Winnebago Industries
Winnebago Industries, Inc., "The Most Recognized Name in Motor Homes®," is a leading U.S. manufacturer of recreation vehicles, which are used primarily in leisure travel and outdoor recreation activities. The Company builds quality motor homes, travel trailers and fifth wheel products. Winnebago Industries has received the Quality Circle Award from the Recreation Vehicle Dealers Association every year since 1996. The Company's common stock is listed on the New York and Chicago Stock Exchanges and traded under the symbol WGO. Options for the Company's common stock are traded on the Chicago Board Options Exchange. For access to Winnebago Industries' investor relations material or to add your name to an automatic email list for Company news releases, visit http://investor.wgo.net.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. A number of factors could cause actual results to differ materially from these statements, including, but not limited to increases in interest rates, availability of credit, low consumer confidence, availability of labor, significant increase in repurchase obligations, inadequate liquidity or capital resources, availability and price of fuel, a slowdown in the economy, increased material and component costs, availability of chassis and other key component parts, sales order cancellations, slower than anticipated sales of new or existing products, new product introductions by competitors, the effect of global tensions, integration of operations relating to mergers and acquisitions activities, unexpected expenses related to ERP and Strategic Sourcing projects and other factors. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or from the Company upon request. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained in this release or to reflect any changes in the Company's expectations after the date of this release or any change in events, conditions or circumstances on which any statement is based, except as required by law.
Public Relations Specialist
Source: Winnebago Industries, Inc.