Polaris Plans To Realign Manufacturing Operations

Polaris Industries (PII) said that it plans to realign its operations and refocus on its core strategic manufacturing processes, in an effort to improve its long-term competitive positioning, increase operational efficiencies and position the company for future growth.

The company said that it will create manufacturing centers of excellence for Polaris Products by enhancing the existing Roseau, Minn. and Spirit Lake, Iowa, production facilities and establishing a new facility in Mexico.

The company is currently evaluating several possible locations in the Monterrey/Saltillo area of Mexico for the new facility. The realignment is expected to lead to the eventual sale or closure of Polaris' Osceola, Wisconsin manufacturing operations over time.

The Mexico facility is expected to maintain Polaris' quality while improving the company's on-time delivery to customers and provide significant savings in logistical and production costs.

Polaris Industries said that the realignment of its manufacturing footprint will strengthen its position in the powersports industry, as it will enable it to have production facilities closer to customers in the Southern US.

In addition, the company said that the manufacturing realignment will provide it with the capabilities to manufacture ORVs (both ATVs and side-by-side vehicles), which represents more than two-thirds of the company's sales, in multiple locations depending on customer demand.

Scott Wine, CEO of Polaris Industries, said: While this was a difficult decision for us, given the impact on our employees at the Osceola facility, we believe the creation of these manufacturing centers of excellence will strengthen our company over the long-term and enable us to maintain our lead in a competitive market.

Pursuing opportunities in new markets outside the United States, while concurrently evaluating our cost structure to improve our long-term competitive positioning are key components to our growth strategy. This decision was based on a thorough review of our worldwide operations and will allow us to improve our ability to meet the quality, delivery and cost standards desired by our dealers and customers.