Load handling expert Hiab, part of Finnish company Cargotec, has announced plans to restructure its operations in Hudiksvall, Sweden.
According to Cargotec, “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 of loader cranes, recycling cranes and forestry cranes will come to an end in Hudiksvall. As a result, any 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,” said Mika Selänne, Vice President, Hiab Supply.
The planned measures are expected to result in annual cost savings of about €11 million from 2016 and generate restructuring costs of approximately €14 million.
The planned measures may lead to a reduction of approximately 150 employees in Hudiksvall, where Hiab currently employs around 300 people.