Announced expansion of the Company’s White Bluff, Tennessee manufacturing facility is expected to create up to 132 full-time jobs.
Collingwood, Ontario, September 7, 2022 – The Limestone Boat Company (the “Company”) (TSXV: BOAT | OTCQB: LMSBF) – owner of TN Composites and builder of Aquasport Boats, Limestone® Boats and Boca Bay Boats – is pleased to announce expansion plans for its Tennessee manufacturing facility that will significantly increase the Company’s production capacity and create more than 130 new full-time jobs.
Adopting a phased approach to its TN Composites facility’s expansion, the Company expects to invest $23.1 million over the next three to five years to transform the Company’s existing manufacturing capabilities through the expansion and reconfiguration of its production space, integration of additional technology, expansion of its research and development resources and optimization of its manufacturing process flow. Phase One will be focused on the existing facility and labor force; expanding the use of technology, integrating Light Resin Transfer Molding and vacuum infusion processes, and reallocating space for the commencement of big boat production (27-foot to 30-foot models), while receiving state support to enhance the workplace environment and improve throughput capacity. Phase Two will see the Company further build out its manufacturing campus footprint, both through the expansion of its current facility, and the construction of a new building that will house its administration and research and development teams. The Company expects that the facility upgrades, implementation of technological innovations, and the reconfiguration of the manufacturing processes will lead to significant efficiency gains, increased revenues, margins and profitability. The Company anticipates funding for the initiatives to be achieved through equity and debt offerings in 2023 with a target completion date of Q1 2025.
“Our commitment is an investment in a relationship with the White Bluff and Dickson County communities that has existed for generations,” said Chief Executive Officer, Scott Hanson. “We’re proud to state that we will continue to establish the Limestone Boat Company as the leading employer of choice for a highly skilled workforce in a growing and recognized boat manufacturing region of the U.S. By investing in our people, facilities and technologies to create a pleasant, modern work environment, we will enhance growth opportunities for our employees and the Company as a whole.”
The Tennessee Department of Economic and Community Development (the “TNECD”) has worked to create “an environment unbound by state borders” and establish resources to make Tennessee accessible to any international market by lowering operating costs, reducing capital outlay and minimizing risk. Flexible incentives and grants designed to foster long-term economic growth and increase profitability for investing companies through workforce training, infrastructure, and economic development programs are part of the State’s return commitment to the Company. “FastTrack” grants are made to assist expanding companies with the training of new full-time employees and offset business expansion costs, while competitive tax incentives and credits are available based on a number of criteria including jobs created, amount invested, location, type of business and industrial machinery purchased.
Tennessee Governor Bill Lee said, “Our strong business climate and skilled workforce make Tennessee the ideal location for TN Composites to thrive. I commend this company’s decision to create more than 130 new manufacturing jobs in Dickson County and look forward to their continued success.”
“When a company like TN Composites expands in our state, it is not only a testament to the workforce or business climate but also to the community that company calls home. We are proud to be the home of TN Composites and thank this company for its continued investment in Tennessee,” added TNECD Commissioner Stuart McWhorter.
The Company is thankful for the state of Tennessee’s and Dickson county’s support and is positioning itself to meet a growing appetite for its product that surpasses by far the Company’s current manufacturing capacity. Inflationary pressures and recessionary realities have yet to dampen demand from both existing dealers as well as prospective dealers that wish to represent the Company brands. Upon completion of the expansion plan, the Company expects to triple its production capacity, further capitalizing on its favorable and growing brand awareness, and ultimately deliver meaningful returns to its stakeholders and the community in which it intends to thrive.
“We continue to have a healthy backlog for our brands and believe this to be a strong indication that the long-term growth trends in the marine industry remain resilient,” said Limestone Boat Company Chairman Telfer Hanson. “The expansion of our facility and workforce is a long-term strategic priority that will allow us to increase our volumes and provide big water boats of the highest quality to our growing customer base for years to come.”
The Limestone Boat Company – owner and builder of Aquasport Boats, Limestone® Boats and Boca Bay Boats – is publicly traded on the Toronto Venture Exchange under the ticker symbol BOAT and on the U.S.-based OTCQB® Venture Market under the ticker symbol LMSBF. They are headquartered in Collingwood, Ontario with a 145,000 sq. ft. manufacturing facility in White Bluff, Tennessee. The company is backed by a large, skilled labor force and dealer partners throughout the United States and the Canadian Great Lakes Region.
For more information, contact:
Bill Mitoulas | Investor Relations