Terex Cranes to Sell and Consolidate Facilities, Reduce Headcount by 30%

December 14, 2016 - In order to deliver on its commitment ot customer responsiveness and providing valuable products and services, Terex Cranes' new president, Steve Filipov, said the company "must be laser-focused on controlling costs, aligning its manufacturing footprint with market conditions and creating a more streamlined and responsive organizational structure." Part of this cost-alignment strategy will be to sell facilities and consolidate others and reduce headcount.

 

The company announced this week it would be selling a fabrication components and parts facility that it currently operates in Pecs, Hungary. Additionally, Terex Cranes will consolidate its three current manufacturing locations in Zweibrücken, Germany, into two. The company will continue manufacturing operations of the Demag crawler and all terrain crane lines in its Dinglerstrasse and Wallerscheid locations and make multimillion-dollar investments in both facilities to support ongoing manufacturing operations. It will cease machine production in the Bierbach facility in 2017 and the facility will be sold.

In 2016, Terex Cranes consolidated all North American crane production into the existing Terex manufacturing facility in Oklahoma City, Okla. The pending sale of the Material Handling and Port Solutions business to Konecranes will include the Montceau Les Mines, France, production facility, which manufactured four Terex all-terrain crane models. Production of these crane models is being absorbed by other Terex manufacturing locations.

 

 

“With the consolidation efforts started in 2016 and the announced changes in Hungary and Zweibrücken in 2017, the Cranes business global headcount will be reduced by approximately 30%. While these decisions are difficult to make, they are necessary to build a stronger, more focused and efficient Terex Cranes that will continue to innovate and grow,” adds Filipov. “The steps taken will allow us to continue to invest in product innovation and service to drive customer satisfaction and the resulting business success.”