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Fleetwood RV to close Pennsylvania plant
Friday, October 10, 2008

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Fleetwood Enterprises, Inc., announced today that it is relocating motorhome production from its plant in Paxinos, Pa., to its plants in Decatur, Ind. The Paxinos manufacturing facility, which builds Class A gas and Class C products, will cease operations in early December 2008. The full line of products currently built in Paxinos will be transferred to the Decatur manufacturing complex, which currently builds Class A diesel products.

"This is a difficult but necessary operational change," said Paul Eskritt, president of Fleetwood's RV Group. "We are now in the fourth year of a declining motorhome market and current forecasts indicate further declines into 2009. We firmly believe that the market will rebound, and we have enough excess capacity in Decatur to handle this consolidation as well as a healthy increase in market demand. Our Decatur personnel have experience building both Class A and Class C motorhomes, so we expect the transition to be smooth. In addition to greater capacity utilization, other advantages of the relocation include the closer proximity of our Indiana plants to most of our primary suppliers, as well as a larger portion of our dealer network in the East."

This consolidation will not affect the availability of Fleetwood motorhomes to dealers or consumers in the marketplace. All current brands and models will continue to be offered.

"We are naturally concerned about the impact this action has on our associates, many of whom have long-term service with Fleetwood," Eskritt said. "The difficult decision to close the plant is strictly market-related.

The Paxinos plant, which opened in 1973, currently employs approximately 325 people. The company said most have not been working full shifts for some time.

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