Cargotec finalises the statutory cooperation negotiations regarding its programme to achieve annual cost savings of approximately EUR 25 million in MacGregor
CARGOTEC CORPORATION, PRESS RELEASE 23 JANUARY 2017 AT 9.45 AM (EET)
Cargotec launched in 25 October 2016 a programme to achieve annual cost savings of approximately EUR 25 million by seeking efficiency improvement and cost savings. The global statutory cooperation negotiations have been finalised resulting in restructuring of operations and reducing of 230 full-time equivalents globally. The measures are affecting especially MacGregor operations in China, Finland, Norway, Singapore and Sweden.
In addition to the above measures, and to support MacGregor strategy to apply asset light business model, MacGregor has made an agreement to sell assets of its production facility in Uetersen, Germany, to a newly founded company Uetersener Maschinenfabrik GmbH. The deal was closed in 30 December 2016 and 79 production team members transfer to the new company.
Above measures result in restructuring costs of EUR 31.5 million in the final quarter of 2016.
"These are difficult steps we are taking, and they will affect to people who have contributed to MacGregor's success. However, we need to adapt to the current reduced demand whilst maintaining our industry leadership position. Taking into account the current market environment, we aim to be profitable with these measures. At the same time, we continue to invest in new segments where our presence has been limited in the past, as well as in new technology. We also put a lot of focus on our service business, and maintain a connection with our customers throughout the whole life-cycle of their assets and offer solutions to improve our customers' operations. We have an extremely strong competency in order to help our customers operate more efficiently," says Michel van Roozendaal, President of MacGregor.
Mikko Puolakka, Executive Vice President, CFO, tel. +358 20 777 4105
Hanna-Maria Heikkinen, Vice President, Investor Relations, tel. +358 20 777 4084
Michel van Roozendaal, President, MacGregor, tel. + +32 478 80 60 92
Cargotec (Nasdaq Helsinki: CGCBV) is a leading provider of cargo and load handling solutions with the goal of becoming the leader in intelligent cargo handling. Cargotec's business areas Kalmar, Hiab and MacGregor offer products and services that ensure our customers a continuous, reliable and sustainable performance. Cargotec's sales in 2015 totalled approximately EUR 3.7 billion and it employs over 11,000 people. www.cargotec.com