Konecranes to reallocate resources
Global lifting equipment provider, Konecranes, has announced that it is terminating its straddle carrier manufacturing unit in Tauberbischofsheim, Germany, as a result of new equipment demand moving towards emerging markets.
The Finland-based company is considering closing its German Port Cranes business unit, along with its industrial crane manufacturing unit in Huvinkää, Finland and Vic, Spain. In doing so, it says it will organise itself into larger sales areas with fewer, yet stronger units.
The group says it will continue its straddle carrier manufacturing using other group facilities around Europe, as well as its extensive subcontracting network.
Around 140 employees will be affected by the closing of business units. Konecranes said it expects to incur restructuring costs of approximately E10m due to these actions and targets annual cost savings of approximately E10m starting from the second half of 2013.
Statutory negotiations regarding possible personnel reductions in Finland are due to begin as the business reorganises to emerging markets closer to its customers. The company has estimated that the permanent personnel reductions will affect 35 employees within the Business Area Equipment, but aims to offer employment possibilities for the affected employees in the growing markets.
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