August 23, 2007 • Manitowoc, Wis.-based Manitowoc Company, Inc. has announced that it has reached an agreement with Valcovna profilov a.s. for the development of a crane manufacturing facility in Saris, Slovakia. The facility, which will be refurbished and re-equipped, will serve as the final manufacturing and assembly site for Grove, Potain, and Manitowoc cranes being delivered to customers in East European markets, particularly in Russia and the 11 former Soviet Republic countries that make up the Commonwealth of Independent States (CIS).
"Our move into Eastern Europe is another example of our commitment to bringing design and manufacturing closer to the end customer," said Glen Tellock, Manitowoc's president and CEO. "Slovakia is an excellent addition to our global footprint, as it reduces shipping costs and delivery schedules to the fast-growing Eastern European and Russian construction markets. Our selection of an existing industrial facility in Saris will also reduce development costs and enable us to begin production on a faster timetable than a greenfield project would allow. In addition, we will have access to local component suppliers and skilled manufacturing labor at rates that are cost competitive with other European markets."
The company expects to begin production from the Saris facility in late 2007. Financial terms of the transaction were not disclosed, but Manitowoc is revising its 2007 capital expenditures guidance from $70 million to $85 million for the full year as a result of this acquisition and other capacity initiatives in its Crane Group.
