Groupe Beneteau, a international boat builder, announced that it planned to close its manufacturing plant (above) in Marion County in July and lay off 180 workers. But the facility is now being purchased by an international manufacturer of fiberglass swimming pools. Provided/Leisure Pools
A longstanding factory in Marion County is trading out luxury sailboats for fiberglass swimming pools as part of a business deal that could save much-needed jobs in the small Pee Dee community.
Groupe Beneteau, a well-known international boat builder, notified state and local officials in early July it planned to permanently close its only factory in South Carolina and lay off 180 workers.
The loss of that factory, located just outside the city of Marion, was a huge concern for the employees, local governments and other businesses that historically relied on the income and tax revenue generated by Beneteau’s operations.
The company, which is based in France, said the closure was tied to the coronavirus pandemic, which temporarily shuttered some the boat business’ manufacturing plants and led to a deep decline in sales worldwide.
The company notified the S.C. Department of Employment and Workforce it planned to lay off factory employees on Sept. 16.
But before that date, a new company announced it is stepping in to take over the 225,000-square-foot plant, which has served as an economic backbone for the region for more than three decades.
Leisure Pools Group, one of the world’s largest manufacturers of composite fiberglass swimming pools, announced its purchase of Beneteau’s factory on Sept. 10.
Demand for Beneteau’s sailboats may have dropped off amid the global health crisis, but those challenges are apparently not being felt by Leisure Pools, a private company based in Australia. Neither company responded to phone calls seeking comment.
But in a statement, the executives with Leisure Pools said the addition of the Marion County factory was needed to keep up with the demand for in-ground pools built from fiberglass.
It’s unclear how much Leisure Pools is set to pay for the factory, located along U.S. Highway 76, but the company suggested the infrastructure at the facility and the skill sets of Beneteau’s workforce will help speed the transition.
Julie Norman, executive director of the Marion County Economic Development Commission, said Leisure Pools’ interest in the factory was like the sun coming out over the horizon. The pace at which the deal materialized, she said, was unlike anything she’s seen during her 22 years in economic development.
“This doesn’t happen very often,” said Norman. “I’ve been in this business for a long time, and I don’t think I’ve ever seen a plant closure turn into a new announcement in a couple months. That’s rare.”
“It has just fallen into place beautifully,” she added. “I wish all projects were like this.”
The county was on the receiving end of an additional economic boost last week when bedroom furniture manufacturer and distributor Maxwood Furniture announced it was investing $5.8 million and adding 30 jobs to expand it existing operations by the end of next year.
‘A flagship institution’
Even so, Beneteau will be missed.
The company started production at its South Carolina site in 1986 and has operated as Marion County’s second-largest employer. State Sen. Kent Williams, a Democrat who has represented the area for 15 years, referred to Beneteau as a “flagship institution” in the region.
When Williams learned of the factory’s pending closure in July, he was a little surprised. The plant, he said, made it through several economic downturns in its three-decade history, when financial pressures forced other businesses to fold.
“I’ve been amazed by Beneteau and the factory’s survivability over the years,” Williams said. “But the economic consequence of this global pandemic has really impacted their business.”
Williams added, “People don’t create businesses to employ people; they create businesses to make money. If you are not making a profit, at some point, they are going to make the tough decision and pull the plug.”
That’s exactly what happened in early July, according to news releases from the company.
Beneteau said it suffered a 43 percent drop in income from its boat division earlier this year, and the company expected the ongoing contraction in the market to rival the downturn that was experienced during the Great Recession.
As a result, the company announced it would close, sell, shut down or scale back operations at seven factories in the U.S. and Europe. According to a statement from the company, the employment cuts are necessary to “simplify” the organization and trim its operating costs.
The biggest hit, however, was delivered to Marion County. The layoffs in South Carolina accounted for more than half of the 300 jobs Beneteau said it needed to eliminate worldwide.
Williams understands the economic realities facing Beneteau and why it chose to close up shop in South Carolina. But that didn’t make it any easier.
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