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Harley-Davidson Announces Plans to Expand York, Pennsylvania Manufacturing Operation

Harley-Davidson Announces Plans to Expand York, Pennsylvania Manufacturing Operation

    YORK, Pa., July 11 Harley-Davidson Motor Company announced
plans today to build a new $145 million, 350,000-square-foot manufacturing
facility on the site of its existing assembly plant in York, Pa.
    "Increasing our manufacturing capacity is a critical component of our
Strategic Plan for Sustainable Growth," said Jeffrey Bleustein, Chairman and
Chief Executive Officer of Harley-Davidson, Inc.  "There's a strong unmet
demand in the marketplace and by building more motorcycles, we can fulfill the
dreams of more of those customers.  Locating the new plant in York will also
allow us to take advantage of the experienced and knowledgeable work force we
already have in the area so we can meet our customers' needs even sooner."
    "The expansion of the York facility demonstrates Harley-Davidson's
commitment to the local workforce and how our employees' craftsmanship, pride
and enthusiasm prime the company for future growth," explained Harry Smith,
President of the International Association of Machinists and Aerospace
Workers, Local 175.
    "Pennsylvania is a big fan of Harley-Davidson, and today's announcement
affirms that Harley-Davidson is a big fan of Pennsylvania," Pennsylvania Gov.
Tom Ridge said.  "When Harley-Davidson made the smart decision to move its
assembly operations to York in 1973, they immediately learned what we've
always known -- that Pennsylvania's workers are the best in the world.  Just
ask any 'H.O.G.' owner who climbs onto a Harley-Davidson motorcycle, and
they'll tell you about the quality product made right here in Pennsylvania.
We make stuff in Pennsylvania -- the best stuff in the world.  That's why I'm
so proud today to announce that one of this nation's manufacturing icons has
decided to stay and grow right here -- adding 275 new employees to its
existing workforce of more than 3,000."
    Roadway and infrastructure planning for the expansion will continue with
the collaboration of the Pennsylvania Department of Transportation and county
and municipal officials over the next several weeks.  Work on the plant site
is scheduled to begin as soon as the necessary permits have been received.
Construction for the facility expansion will take approximately 24 months.
    Production of Harley-Davidson motorcycles at the York facility began in
1973.  The property encompasses 232 acres with 1.2 million square feet of
space under roof.  The York plant currently provides machining, fabrication,
paint and final assembly of the Dyna, Softail and Touring models and builds
limited edition custom models.  York also manufactures current and non-current
replacement parts.
    Harley-Davidson continues to add to its production capacity
through an ongoing capital investment program.  In addition to the York
expansion, the Company has announced plans to expand its operations in
Tomahawk, Wis., and at its Product Development Center in Milwaukee.
    Harley-Davidson has spent approximately $1 billion on capital improvements
during the prior six years and will spend approximately $250 million during
2001, noted Bleustein.
    Harley-Davidson Motor Company, the only major U.S.-based motorcycle
manufacturer, produces heavyweight motorcycles and offers a complete line of
motorcycle parts, accessories, apparel, and general merchandise.  Buell
Motorcycle Company produces sport and sport-touring motorcycles.