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The consolidation of the Coachmen Recreation Vehicle Co. (CRV) and Shasta Industries subsidiaries of Coachmen Industries Inc. is entering Phase 2, Chairman Claire Skinner said during Coachmen’s annual shareholders meeting today (May 3).

Phase 2 of the consolidation includes the phase-out of the Shasta production plant along U.S. 20 to the west of the village of Middlebury, Ind., Skinner said during a conversation with reporters following the end of the formal portion of the meeting.

The Shasta plant along U.S. 20 currently employs 99 people. Skinner, who also is the president and CEO, did not want to speculate about the length of time it will take to wind down production at the U.S. 20 plant.

Shasta production will be moved to the CRV complex along Indiana 13 at the north edge of Middlebury.

There will be layoffs as a result of the consolidation and will occur on a case-by-case basis, depending on the employee’s skills, she said. Some employees currently working at the CRV complex might be laid-off as a result of this process, Skinner added.

Otherwise, Skinner said sales revenue from the parent company’s modular home and structures business will account for about 37% of Coachmen’s total revenue in 2001. In 1999, modular homes accounted for 18% of Coachmen’s annual sales and in 2000, modular homes and structures accounted for 24% of sales.

Skinner’s goal is for sales of modular homes and structures to account for 50% of Coachmen’s total sales “to mitigate the RV industry’s cycles.”

She believes the strong steps Coachmen took during the soft market in 2000 will allow Coachmen’s RV business to grow at a faster rate that the industry as a whole during the coming years.

The strong steps included the elimination of 1,000 jobs, or 26% of the Coachmen’s total payroll, excluding the people working at the modular home and modular structures companies that Coachmen acquired during 2000.