Friday, November 28, 2008



from RV NEWS:

Fleetwood Enterprises, Inc. (NYSE: FLE) announced today the consolidation of several manufacturing facilities in coordinated actions designed to match current production to market demand and improve capacity utilization.

The Company has notified its associates of the closures at its manufactured housing plants in Woodland, Calif.; Auburndale, Fla.; Willacoochee, Ga.; Benton, Ky.; and Pembroke, N.C. All of these plants will work through the orders they currently have and will begin transitioning production to some of the remaining 13 Fleetwood Housing Group facilities. They are expected to close within approximately 60 days. The Company's Trendsetter Homes plant in Douglas, Ga., which is one of two producing modular housing, will also be closed, effective immediately.

Impending closure announcements were also made at Fleetwood's travel trailer manufacturing centers in Crawfordsville, Ind. and Mexicali, Mexico. After the transition, all of the Company's travel trailers and fifth wheels will be produced in its three existing plants in Ohio and Oregon.

"In the current economic climate, it is essential that we match our production to demand," said Elden L. Smith, Fleetwood's president and chief executive officer. "With 13 remaining housing plants and three travel trailer plants, we can continue to service all our existing dealers and the markets in which we currently operate. As difficult as it is to make decisions like these that impact the lives of our valued associates, we must position Fleetwood to operate profitably under the present and foreseeable business circumstances. We believe that these moves, in conjunction with the previously announced consolidation of two motor home plants, other significant cost-saving measures, and our proposed balance sheet restructuring, will enable us to weather the current economic crisis."

The Company will work to place a limited number of associates within the organization, but it is expected that most of the jobs will be permanently lost. Assistance will be provided to all affected associates in cooperation with state and local agencies.

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