BRP Expanding Manufacturing Footprint in Mexico

BRP, Valcourt, Québec, has major plans to increase its manufacturing capabilities in Mexico. The company has announced plans for a 500,000 square-foot facility of in Juárez, an estimated investment of $55 million in facilities and the creation of some 900 jobs.

BRP says the investment will enable it to increase its Can-Am product offering to meet future demand in off-road segments.

"The off-road industry is strong and growing fast and our Can-Am all-terrain and side-by-side vehicles continue to make inroads in the market place. We are investing in a new facility to meet future demand and in expectation of entering new ORV segments,' said José Boisjoli, BRP's president and chief executive officer. "This investment will also provide us with space for the potential insourcing of certain operations, and will bring logistics closer to our manufacturing operations.'

The 500,000 square-foot (46,000 square-metre) Juárez facility represents an investment of an estimated 654 million Mexican pesos ($55 million) and could result in the creation of approximately 900 permanent jobs upon completion. The company's previously issued guidance for fiscal year 2015 capital expenditure remains unchanged from $165M to $175M.

The construction will start in the upcoming months and the manufacturing operations are expected to begin by the end of 2015. BRP expects the project to be completed by the end of 2017.

"The location was a logical choice for BRP as we already have a facility in Juárez where operations are going very well. Both plants will be geographically close to each other,' said Sylvain Blanchette, Vice-President, Operations in Mexico. "The culture and values of BRP are well established among our employees and we have a strong talent pool in Juárez.'

This will represent BRP's third manufacturing facility in Mexico where BRP has had an established presence since 2001.

BRP portfolio includes Sea-Doo watercraft, Ski-Doo and Lynx snowmobiles, Can-Am all-terrain and side-by-side vehicles, Can-Am Spyder roadsters, Evinrude and Rotax marine propulsion systems as well as Rotax engines for karts, motorcycles and recreational aircraft. The publicly-traded company reports annual sales of over $3 billion from 105 countries and employs approximately 7,100 people worldwide.