Steinway Subsidiaries Consolidate Plants

The Selmer Co. and United Musical Instruments U.S.A. Inc. (UMI) -- both subsidiaries of Steinway Musical Instruments Inc. -- plan to move production of Selmer's Emerson line of flutes and piccolos from its Elkhart, Ind., plant to UMI's Armstrong brand flute production plant, also in Elkhart. The consolidation, planned to take place over two months, aims to help Steinway better use existing production, achieve more efficient cost control, and improve its instruments' overall quality. UMI, headquartered in Elkhart, is a recent Steinway acquisition; the transaction closed in September. UMI also has plants in Arizona and Ohio. Many of Emerson's employees will be transferred to the Armstrong plant. Emerson's sales, customer service, and product-development operations will remain part of the Selmer Co., which is headquartered in Elkhart and has two additional facilities there that make other instruments. Steinway Musical Instruments, headquartered in Waltham, Mass., had 1999 net sales of $304.6 million. UMI projected fiscal 2000 revenue at $70 million.

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