Distribution of company announcements to the professional platforms, finance portals and syndication of important corporate news to a wide variety of news aggregators and financial news systems.
Cargotec Oyj (HEL:CGCBV) Cargotec Corporation, Press Release, October 20, 2008 at 12:05 p.m. Finnish time
As a result of lower demand and profitability Cargotec announced in September that it would initiate restructuring measures, mainly in Western Europe and North America, affecting some 700 people. The measures are aimed at adjusting capacity in Hiab to the prevailing market situation and improving Hiab's and Kalmar's profitability.
The main need for measures planned to affect personnel is in Finland, Sweden and USA. In the rest of the countries affected, the plans will be communicated once the plans have been finalised. Finland is estimated to account for close to 300 people. As part of the planned restructuring measures Cargotec will start employee co-operation negotiations at four locations in Finland: Helsinki, Raisio, Salo and Tampere.
The before mentioned planned savings actions aim, in addition to adjusting capacity, at an annual result improvement of approximately EUR 25 million. The savings actions are expected to result in costs and asset write downs of approximately EUR 35 million.
Due to a downturn in the crane market, Hiab's capacity is not in full use. This requires plans for adjusting capacity and developing the operations structure in order to ensure competitiveness. In order to adjust Hiab's capacity, a plan has been drawn to consolidate crane manufacturing capacity in Europe into three factories. According to the plan manufacturing would cease in the Salo factory in Finland. Hiab starts employee co-operation negotiations with all personnel groups at the Salo factory. Research and development and the management, sales support, service and spare parts functions are planned to remain in Salo. Alternative solutions for the Salo factory are being investigated. In addition, Hiab starts employee co-operation negotiations aiming at cost savings and better efficiency at its Raisio unit in Finland. The restructuring measures will not affect Hiab's sales and services operations in Finland.
Kalmar's profitability has not developed according to set targets. Kalmar business area's restructuring measures aim for better efficiency in operations and lowering fixed and mainly indirect costs. Kalmar will start employee co-operation negotiations at its unit in Tampere, Finland, and the effect on each personnel group will be clarified during the negotiation process. Kalmar's full-year and the third-quarter order intake is good.
Cargotec parent company and Hiab Oy and Kalmar Industries Oy group head offices in Helsinki will also start employee co-operation negotiations aiming for cost savings and improving efficiency with all personnel groups.
Cargotec's restructuring measures do not affect business area MacGREGOR. MacGREGOR's strongly grown order intake needs resources and also the profitability of the business area is developing positively.
Cargotec employs approximately close to 1700 employees in Finland.
In addition to the above mentioned measures taking place in Finland, more restructuring measures are in process and will be started in several other countries mainly in Western Europe and North America. The restructuring measures cover both adjusting capacity in production units and other actions aimed for improving efficiency of the operations. Measures have been started for example in Hiab's units in Dundalk, Ireland; Bispgården, Sweden; and Tallmadge, Ohio, USA. In addition, Hiab's manufacturing operations at the truck-mounted forklift unit in Ohio, USA, will be closed and manufacturing will be consolidated to a joint Cargotec production unit in Kansas.
In addition to these measures, Cargotec continues, as announced earlier, the On the Move change programme aiming at developing the way of working and the global supply footprint. The actions target to the achievement of Cargotec's profitability target by 2011.
More information for the press:
Pekka Vartiainen, President, Hiab tel. +358 (0)204 55 4401
Pekka Vauramo, President, Kalmar tel. +358 (0)204 55 4873
Minna Karhu, Vice President, Corporate Communications, Cargotec tel. +358 (0)204 55 4630 mobile +358 (0)40 532 0007
Cargotec improves the efficiency of cargo flows by offering handling systems and the related services for the loading and unloading of goods. Cargotec's brands, Hiab, Kalmar and MacGREGOR, are global market leaders in their fields and their solutions are used on land and at sea - wherever cargo is on the move. Extensive services close to customers ensure the continuous usability of equipment. Cargotec is the technology leader in its field, its R&D focusing on innovative solutions that take environmental considerations into account. Cargotec's sales exceed EUR 3 billion and the company employs approximately 12,000 people. Cargotec's class B shares are quoted on the NASDAQ OMX Helsinki Ltd. www.cargotec.com
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
