Palmer Johnson taking over Holland Jachtbouw facility
Palmer Johnson has said that it is taking over the Holland Jachtbouw shipyard in the Netherlands.
The company is moving from Sturgeon Bay, Winsconsin where it has been building yachts since 1918.
In a statement the company said that it was moving to Europe for commercial reasons.
Palmer Johnson said: “It in no way a reflection of its workforce in Sturgeon Bay who have for decades consistently produced the quality for which Palmer Johnson yachts are known for.”
“Despite the US being the most important market, there is a limited network of suppliers, subcontractors and no clusters of yacht manufacturers as exists in Europe,” said the statement. “PJ was procuring up to 90% of materials and subcontractor services from overseas in a strong dollar environment, which erodes its competitiveness against the European builders.”
Timur Mohamed, the owner of Palmer Johnson, said: “It was a really hard decision to move its manufacturing away from Sturgeon Bay as the workforce there is among the most talented in the industry.”
Mohamed acquired Palmer Johnson in 2004 after the yard had been forced to file for Chapter 11. As part of the restructuring plan, Mohamed guaranteed that Palmer Johnson would remain in Sturgeon Bay with at least 100 employees for at least two years.
Palmer Johnson received several Department of Workforce Development grants to help it train staff. In 2007 the department invested $58,000 to help Palmer Johnson Yachts and Bay Shipbuilding Company train workers at the Northeast Wisconsin Technical College. Palmer Johnson received a second grant in July 2012
Palmer Johnson recently announced a new build project for 64 metre PJ 210-2. She is scheduled for delivery in November 2017.
A statement from Holland Jachtbouw is expected later this week.