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Monaco Coach Corp. plans to expand its travel-trailer and fifth-wheel assembly plant in Elkhart, Ind., so it can build more Holiday Rambler and McKenzie-brand units.
The Coburg, Ore.-based company plans to build a 150,000-square-foot addition on to its existing 110,000-square-foot plant on Elkhart’s southwest side. That would allow the firm to increase output to between 120 and 130 units per week from the current 65 to 70 units a week.
The added production has the potential to increase Monaco’s annual sales revenue by $100 million to $120 million, said Mike Duncan, investor relations manager.
During the first half of this year, Monaco’s sales totaled $607.3 million and its net profit amounted to $20.6 million.
Monaco’s goal is to begin construction next month and have the addition open for production in 2004, although the company wants to begin using some of the new space next year, Duncan said.
The addition will cost around $5 million to build and equip, and Monaco has asked the Elkhart City Council to approve a tax abatement plan that would save the company more than $500,000 in real estate and personal property taxes from 2004 through 2013.
The council likely will vote on the proposal on Nov. 4.
Over the next two to three years, Monaco will create about 100 new jobs, paying an average of $16.82 an hour to workers at the towables plant. The company currently employs about 2,400 people in Elkhart and nearby Wakarusa, Ind.
Monaco primarily is known as a builder of diesel pusher motorhomes, and it ranked No. 3 in retail market share in the first seven months of this year with a 17.9% share of the combined gas and diesel engine Class A motorhome market, according to Statistical Surveys Inc., an independent market research firm.
Meanwhile, Monaco ranked No. 10 in retail market share in the combined travel-trailer/fifth-wheel category, with a 1.8% market share in the first seven months of this year, Statistical Surveys reported.