Polaris Industries Inc. plans to create manufacturing centers of excellence for Polaris products by enhancing the existing Roseau, MN, and Spirit Lake, IA, production facilities and establishing a new facility in Mexico, likely in the Monterrey/Saltillo area. The realignment, which will lead to the eventual sale or closure of Polaris’ Osceola, WI, manufacturing operations, allows the company to dedicate capital for strategic investments in painting, welding, and assembly operations by outsourcing certain nonstrategic component manufacturing processes. Snowmobile assembly will remain in the Roseau facility, and Victory motorcycle assembly will remain in Spirit Lake; certain Osceola manufacturing processes will be moved into the Roseau, Spirit Lake, and Mexico facilities. The realignment begins immediately and is scheduled for completion in 2012. Polaris plans to have the new production facility in Mexico operational beginning in the first half of 2011. When the realignment is completed, the company says it will have capabilities to manufacture ORVs (both ATVs and side-by-side vehicles) in multiple locations depending on customer demand.