Konecranes is restructuring to lower its European cost base

Within its Service business area, the company has targeted annual cost savings of approximately Euro 7m by these actions, while booking restructuring costs of approximately Euro 6m in Q4, 2011 of which asset write-downs are estimated at around Euro 2m. Restructuring is slated for completion by the end of Q1, 2012.

Within the Equipment business area, action has been initiated to restructure some of the operations and production in Austria and Germany. Assembly of air balancers in Thalgau, Austria, is planned to be combined with Konecranes’ overall crane component supply chain. In addition, Konecranes’ Industrial Cranes business unit is planning to consolidate its operations in Germany.

Estimated to affect approximately 20 employees in Germany, Konecranes hopes to achieve annual cost savings of approximately Euro 2m. The company expects to incur restructuring costs of approximately Euro 4m in Q4, 2011 of which asset write-downs will amount to around Euro 2m. Restructuring is expected to be implemented by the end of 2012.