Monday, November 12, 2007
Business & Technology | Yacht maker moves production from Kalama to China | Seattle Times Newspaper
Business & Technology | Yacht maker moves production from Kalama to China | Seattle Times Newspaper: "The company makes luxury boats about 80 feet to 125 feet long with price tags of $6 million to $13 million, producing one to two a year. Competing yachts made in other countries are available for about $2 million less, Clark said. 'A lot of the expense is labor,' he said. 'With cheaper labor, hopefully our sales will increase.' To maintain quality control, Northstar is establishing and managing its own operation in Zhuhai, a maritime business zone in China, he added. 'We originally went over there thinking we were going to subcontract with an existing company,' Clark said. The layoffs mark the end of three generations of yacht building in Cowlitz County. The founders of Northstar began by buying the assets of Tollycraft, which was founded in Kelso in 1936 and closed in 1998. 'This is really, really tough for me,' Clark said. 'I have been working with people here for 15 or 20 years, and they were like a family to me."
The Daily News Online > Top Story > Why NorthStar Yachts is China Bound: Kalama boatbuilder explains why he outsourced his entire firm: "Now, all that's left of NorthStar's Kalama operations is a warehouse packed with the company's assets waiting to be shipped to Zhuhai. Clark said the Chinese have built 'spec factories' in Zhuhai to lure boat manufacturers like NorthStar. Other cities in China have similar pre-built factories to attract specific industries. 'They have dorms on site where the workers live, it's not like here,' he said."
Another sad transition. First, Tolly's business was bought out by folks who wanted to use his name as a platform to build upscale yachts. Then that business failed and a local fella bought it. Now, all is gone but a brand name from the PRC ... AND .. the legacy of quality, smaller boats .. thinkgs normal folks might be able to buy is ggg-gone.
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