Palmer Johnson Yachts told its employees yesterday that it will be shutting its facilities in Sturgeon Bay, Wisconsin. About 100 workers will be laid off.

A company announcement from its owner, Timur Mohamed states, “Our operation and employment levels have continued to diminish, sales have diminished, offshore competitive pressures have escalated, and as a result this action becomes a necessity.”

Mohamed said there was “no alternative” but that Palmer Johnson would provide support to the maximum extent possible for the employees who are to be laid off.

The company said that it plans to close in 60 days. General manager Marc Castillo, however, told the Green Bay Press-Gazette that the business is not closing at this time. Management is looking at all options to continue to operate, Castillo told the paper.

Much of the shipyard’s woes can be attributed to the stronger US economy. The rise of the US dollar against the euro now makes US build superyachts approximately 25% more expensive than in 2011.

The company is building a 52m (170ft) Sport Yacht which was due for delivery later in the year. Two more yachts were due for delivery over the next two years.