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Press Release

Cargotec reorganises and streamlines Hiab and Kalmar operations in Europe, Middle-East and Africa

4/28/2009

Cargotec Corporation     STOCK EXCHANGE RELEASE                          April 28, 2009 at 9.30 EEST
 
 
Cargotec reorganises and streamlines Hiab and Kalmar operations in Europe, Middle-East and Africa
 
Cargotec plans to combine its Hiab and Kalmar sales and services networks in Europe, Middle-East and Africa (EMEA) during 2009 in a significant reorganisation and efficiency initiative. The new operating model will be aligned with Cargotec's One Company approach with a strong customer frontline and service organisation. With these measures, Cargotec improves further its customer focus and efficiency. In addition to this new operating model, Cargotec plans to close a loader crane factory in the Netherlands.
 
Hiab and Kalmar business areas will move from current separate country level organisations into market area organisations and a customer segment based operating model. While increasing customer focus, the new organisation will strengthen presence with an empowered frontline, wider management spans and a flat organisation structure. Utilising shared back office resources improves efficiency, provides cost savings and enables faster decision making closer to the customer.
 
The planned reorganisation is estimated to have an effect of reducing some 350 employees in current Hiab and Kalmar operations during 2009 with an emphasis on management and back office. The possible measures for the personnel reductions will be initiated locally in employee co-operation procedure in each country. The target is to achieve a running rate of savings of EUR 15 million by the end of 2009, with a further EUR 5 million in 2010.

The reorganisation will not impact Cargotec's external financial reporting.
 
Due to the prevailing market situation the production of loader cranes in Meppel in the Netherlands is planned to be closed during 2009. The closure is part of developing the global supply presence. The plan is aligned with earlier announced actions to consolidate crane manufacturing and to adjust Hiab's production capacity in Europe. Cargotec has initiated co-operation negotiations regarding the possible layoffs of the factory's some 100 employees. The research and development and engineering functions in Meppel continue as part of Hiab's global product development.
 
The initiated reorganisation and the factory closure are estimated to create restructuring charges of EUR 25 million, the majority in 2009.
 
Further information for the press:
 
Mikael Mäkinen, President and CEO
Tel. +358 (0)204 55 4262
 
Pekka Vauramo, Deputy to CEO, President, Kalmar Business Area
Tel. +358 (0)204 55 4873
 
Pekka Vartiainen, President, Hiab Business Area
Tel. +358 (0)204 55 4401
 
Minna Karhu, Vice President, Corporate Communications
Tel. +358 (0)204 55 4630
 
 
Further information for the investors:
 
Eeva Sipilä, CFO
Tel. +358 (0)204 55 4281

Paula Liimatta, IR manager
Tel. +358 (0)204 55 4634
 
 
 
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 totalled EUR 3.4 billion in 2008 and it employs approximately 11,000 people. Cargotec's class B shares are quoted on the NASDAQ OMX Helsinki.
 
www.cargotec.com