Tennessee Governor Phil Bredesen and Economic and Community Development Commissioner Matt Kisber today announced the expansion of a major manufacturer and marketer of high-performance and leisure boats in the East Tennessee region.
The Brunswick Boat Group, headquartered in Knoxville, will embark on an ambitious plan to expand and modernize its Sea Ray operations in Tellico representing a $22 million investment in the region. During the next four years, Sea Ray expects to add 75 new jobs to the already more than 500 jobs at its Tellico plant and an additional 125 new jobs at a production facility in Knox County.
Additionally, the company will make significant environmental-friendly improvements by reducing styrene emissions at by a third at its Vonore, Tenn. factory.
"Brunswick Boat Group is a valued corporate citizen and I applaud the company's decision to expand its Tennessee operations," Bredesen said. "The expansion will not only bring more jobs to the community, but is a testament to the state's healthy business climate. I'm also pleased the company has demonstrated a strong commitment to protecting and preserving our environmental resources."
Sea Ray, one of the 13 brands that comprise the Brunswick Boat Group, the world's largest maker of pleasure boats, will double the capacity of its Tellico factory to concentrate production of its sport boats up to 22 feet in length, including the popular 180, 185 and 200 Sport models. Tellico will also add closed molding, a leading-edge technology which offers highly precise repeatable manufacturing capabilities which improve both product quality and factory productivity, while virtually eliminating emissions of styrene and other harmful materials.
Dustan E. McCoy, president of the Brunswick Boat Group, said the company is proud of its presence, investment and commitment in East Tennessee.
"When we undertook this project, we considered many places, but we kept coming back home," said McCoy. "This region has everything we sought for this project * a skilled and dedicated workforce with a strong work ethic, a strong and diverse base of suppliers, a central location to serve our ever-expanding markets, access to technological expertise and resources as well as reliable and cost-competitive energy. When we added up these attributes, along with cooperative spirit of our local, regional and state governments, it was a slam dunk."
ECD Commissioner Matt Kisber said Brunswick's expansion is an important investment that speaks volumes to the power of partnerships and strong business climate enjoyed in Tennessee.
"Today's announcement is great news and reflects Gov. Bredesen's continued commitment to the Jobs Cabinet approach to job growth of agencies and local governments working together to bring better paying, better skilled jobs to Tennessee," said Kisber. "This is a significant investment in our state and it that demonstrates the advantages of a competitive and quality workforce. Our goal is to continue pushing for economic development efforts that assist existing industries, like Brunswick, remain and grow in Tennessee."
"East Tennessee is fortunate to have a company like Brunswick Boat Group stepping forward to demonstrate the real bottom line value of environmentally sensitive manufacturing," noted TDEC Commissioner Betsy Child. "Brunswick's major investments in clean technology for their boat building operations will create jobs plus produce significant environmental benefits for East Tennessee's air and water."
Along with assistance from the State of Tennessee, the project also involved the collaborative efforts of Knox and Monroe counties, the Knoxville Area Chamber Partnership, the Tellico Reservoir Development Agency and the Tennessee Valley Authority.
"We are extremely pleased to be working with Brunswick on yet another large-scale investment in our community," said Knox County Mayor Mike Ragsdale. "With its growing headquarters downtown and Sea Ray manufacturing plants at Forks of the River, the Brunswick Boat Group is one of our largest and most progressive private employers. The company's plans to add more high-wage jobs and to improve upon its processes for a cleaner environment are incredible wins for Knox County and the region."
"In partnership with the Knoxville Area Chamber Partnership, the Tellico Reservoir Development Agency and the state of Tennessee, TVA has helped the Brunswick Boat Group grow and continue to provide hundreds of high quality jobs in East Tennessee," said TVA Director Bill Baxter. "Economic development is a key part of TVA's mission, and we are glad we could play a role in assisting this excellent company remain one of Knoxville's most established industries."
The Brunswick Boat Group will also establish key partnerships with the University of Tennessee and other institutions to supply its growing need for engineers, managers and supervisors. The company has applied for several Knox County incentives, including a seven-year tax freeze from the Industrial Development Board, which is valued at $1.7 million. Additionally, The Development Corporation of Knox County's Board of Directors will consider a Technology Capital Grant for $1 million. The State of Tennessee has committed $414,000 through the Department of Labor and Workforce Development and $303,055 through the FastTrack Job Training Assistance Program, administered through the Tennessee Department of Economic and Community Development. The company will also be eligible for job tax credits in both Knox and Monroe counties. TVA will also provide a Valley Advantage grant, based on capital investment, employment and wages related to the project.
In 2001, Brunswick formed the Boat Group headquarters in downtown Knoxville, initially announcing 75 corporate jobs. Since then, the company formed an Aluminum Group, which services from the headquarters the newly purchased brands of Crestliner, Lowe and Lund aluminum boat brands. The company also manufactures and markets the brands of Sea Ray, Bayliner, Maxum, Hatteras, Merdian and Sealine pleasure boats, Baja high-performance boats, Attwood and Land 'N' Sea marine parts and accessories. In 2003, the Knoxville office added the Brunswick Acceptance Company, a wholesale financing joint venture. The headquarters now employs 130 people.