CARGOTEC CORPORATION, PRESS RELEASE, 11 FEBRUARY 2014 AT 11:00 AM (EET)
Hiab, part of Cargotec, plans to restructure its operations in Hudiksvall, Sweden. The focus of the current unit is planned to shift from manufacturing to a unit that focuses on developing new products and testing of products, as well as after sales and spare parts support.
The plan is based on an analysis that was initiated due to tightening competition and increasing pressure for cost efficiency in order to achieve a long-term sustainable profitability level.
According to the plan, the production responsibility for loader cranes, recycling cranes and forestry cranes will come to an end in Hudiksvall. According to the plan, the assembly operations in Hudiksvall would cease gradually by the first quarter of 2015.
"I want to emphasise that this plan is not because of any dissatisfaction with the current assembly work. The plan is entirely based on the need to improve Hiab's profitability and to reduce our cost structure to a competitive level," says Mika Selänne, Vice President, Hiab Supply.
The planned measures are expected to result in annual cost savings of approximately EUR 11 million with full effect from the year 2016, and generate restructuring costs of approximately EUR 14 million.
Hiab has informed its employees about the plan and starts cooperation negotiations in Hudiksvall. The planned measures may lead to a reduction of approximately 150 employees in Hudiksvall.
Today, Hiab employs approximately 300 people in Hudiksvall.
Further information for the press:
Mika Selänne, Vice President, Supply, Hiab; tel. +358 40 566 8199, e-mail firstname.lastname@example.org
Lotta Clausen, Communications Director, Hiab; tel. +46 372 378138, e-mail email@example.com
Further information for investors:
Paula Liimatta, Investor Relations Director, tel. +358 20 777 4084, e-mail firstname.lastname@example.org
Hiab is the world's leading provider of on-road load handling equipment. Customer satisfaction is the first priority for us. Around 2,800 professionals at Hiab work to provide high-performance products and services that meet customer needs globally. Our product range includes HIAB loader cranes, JONSERED recycling and forestry cranes, LOGLIFT forestry cranes, MOFFETT truck-mounted forklifts and MULTILIFT demountables, as well as DEL, WALTCO and ZEPRO tail lifts. www.hiab.com
Hiab is part of Cargotec. Cargotec's sales totalled EUR 3.2 billion in 2013 and it employs approximately 11,000 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com