Wednesday , 23 October 2019
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As a result of new equipment demand moving towards emerging markets, Konecranes Business Area Equipment has initiated actions to align operations closer to customers. In doing so, the Group, in its Business Unit Industrial Cranes will organise itself into larger sales areas with fewer, yet stronger units.

Konecranes to reallocate resources to emerging markets

In addition, the company will consider discontinuing industrial crane manufacturing in Hyvinkää, Finland and Vic, Spain. Hyvinkää will remain the main location for component manufacturing for heavy-duty industrial cranes and port cranes.

In the Port Cranes Business Unit, Konecranes is to terminate straddle carrier manufacturing in Tauberbischofsheim, Germany which in future will be manufactured at other Group facilities and by the Group´s extensive subcontracting network.

According to the company, these actions will affect approximately 140 employees globally and it expects to incur restructuring costs of approximately EUR10m (US$13m) due to these actions of which approximately EUR6m will be recognised in Q4 figures for 2012 and the remainder in Q1, 2013.

The total cash flow impact of these restructuring costs will be approximately EUR5m. With these planned actions, Konecranes has targeted annual cost savings of approximately EUR10m starting from the second half of 2013 on.

Due to the business reorganisation, Konecranes will start statutory negotiations regarding possible personnel reductions in Finland. It estimates that the permanent personnel reductions will affect 35 employees within the Business Area Equipment. The planned changes in Finland are part of the Business Area wide realignment of operations.