Konecranes Business Area Equipment Reallocates Resources to Emerging Markets
As a result of new equipment demand moving towards emerging markets, Konecranes Business Area Equipment has initiated actions to align operations closer to customers. The Industrial Cranes business unit will organize itself into larger sales areas with fewer units. The company is also considering 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 considering terminating straddle carrier manufacturing in Tauberbischofsheim, Germany. Straddle carrier manufacturing would continue using other facilities, as well as the group´s subcontracting network.
These actions will affect approximately 140 employees globally. Konecranes expects to incur restructuring costs of approximately EUR 10 million due to these actions of which approximately EUR 6 million will be recognized in the fourth quarter of 2012 and approximately EUR 4 million in the first quarter of 2013. The total cash flow impact of these restructuring costs will be approximately EUR 5 million. With these planned actions, Konecranes targets annual cost savings of approximately EUR 10 million starting from the second half of 2013 on.
Due to this business reorganization, Konecranes will start statutory negotiations regarding possible personnel reductions in Finland. The company 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.
Konecranes Group has approximately 12,100 employees globally. In Finland, Konecranes employs approximately 2,000 people of which approximately 1,200 are located in Hyvinkää. Konecranes aims to offer employment possibilities for the affected employees in the growing markets.