VANCOUVER, WA-Nautilus Inc. will shutter and sell a 135,000-sf cardiovascular equipment manufacturing plant and 63,000-sf distribution facility in Tyler, TX. The locally based public company is consolidating its domestic manufacturing of cardiovascular equipment in Tulsa, OK.
Nautilus acquired the Texas facilities as part of a 2001 acquisition. Since that time, the facilities have been used to manufacture and distribute treadmills and TreadClimber cardio products. The plant and distribution center will be shut down by the end of the year, eliminating 100 jobs. Nautilus values the facilities at approximately $5 million.
The shift to Tulsa will create about 50 new positions, taking total employment there to about 220. The transition will begin in June as the company shifts production of Nautilus Sport Series treadmills, and Bowflex TreadClimber 5300 cardio units to Tulsa.
Nautilus chief executive Gregg Hammann says the decision to consolidate its domestic cardio manufacturing is part of an ongoing initiative to improve manufacturing competitiveness and long-term operating efficiencies. Hammann says its 125,000-sf Tulsa manufacturing facility can absorb the additional manufacturing volume on a single four-day-a-week shift with only modest expansion to its materials management area.
"As we evaluated cardiovascular manufacturing requirements over the next five to seven years, we concluded that a single domestic cardio facility would be the best decision for our future growth," he says. "Compared to operating two facilities within 300 miles, one facility provides significant manufacturing efficiencies, primarily through overhead, labor savings, procurement leverage, engineering expertise, and quality control."
Following the consolidation, Nautilus will have one domestic cardio facility in Tulsa and one domestic strength facility in Independence, VA. Both facilities make high-quality fitness products that retail for more than $3,000 on average. Other cardiovascular products currently manufactured in Tyler will either be discontinued or transitioned to one of the company's contract manufacturing partners in Asia.
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