In 2019, Husqvarna Group will exit certain low-margin gas-powered product segments in the Consumer Brands Division and instead focus on strengths in premium offerings under the core brands of Husqvarna and Gardena. The exit is an important step to enable more focus on and investments in future profitable growth areas such as robotic lawnmowers, digitization and technology for battery-powered products. A restructuring program is being implemented to adjust manufacturing capacity following the exits.
This exit mainly involves gas-powered walk-behind lawnmowers and garden lawn tractors in lower price points and to a smaller extent also some consumer handheld products. To support this effort and to simplify the business portfolio, improve profitability, and accelerate long-term growth, Husqvarna Group plans to close its McRae, Ga., operations.
The planned closure of the gas-powered walk-behind lawnmower, tiller and snow thrower operations in McRae, Ga., is scheduled for the end of Q2 2019. “This is a difficult decision and has come about after very thorough and careful consideration of all our options,” says Earl Bennett, President of Husqvarna Brand Division North America. The company recognizes the closure will have a significant impact on its employees and is committed to supporting them through this transition.
The company is actively seeking to transfer the McRae plant operations to a new owner. “We will honor all customer commitments for the duration of the 2019 fiscal year; and are currently pursuing alternative sourcing arrangements, in the Group or through a third party, for 2020 premium priced push mower product under the Husqvarna Brand,” Bennett continues.
The company’s snow thrower production will move to their Orangeburg, S.C., manufacturing facility and there is no anticipation of interruption in production.