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Latin America Business News

Callaway Golf to Move Operations to Mexico

In a move expected to save Callaway $35 Million over 3 years, golf ball production will be moved to a new plant in Monterey Mexico. Callaway’s golf club manufacturing operations will also move to Mexico over the next 18 months.

The town of Chicopee MA has been home to the Callaway plant since 1904. The town of Chicopee, worked hard to offer Callaway various utility saving options as well as tax breaks, but simply could not complete with the labor savings in wages and benefits Mexico had to offer. Furthermore, the fact Mexico does not have the EPA and their regulation is appealing.

When the restructuring is complete, one half of Callaway’s manufacturing will be done in Mexico, with the other half in China.