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Terex to Refocus European Manufacturing Strategy in 2017
After reintroducing the legendary Demag brand and rolling out the new Demag® 5-axle product line and Terex® global rough terrain line in 2016, Terex Cranes continues its culture of innovation to develop and introduce the products that will deliver value and meet the needs of its customers, both today and in the future. Throughout early 2017, the company will launch a new flat top tower crane, re-enter the City class crane market and introduce a 300 t 6-axle crane. Among other machines and the latest technologies offered, the company will also introduce a new SK series hammerhead tower crane at CONEXPO-CON/AGG this March in Las Vegas, Nevada. “We are committed to being the most customer-responsive company in the industry through providing valuable product and service solutions that produce an excellent return on the customer’s investment,” says Steve Filipov, Terex Cranes president. “For us to deliver on these commitments and innovate the technologies of today and tomorrow, we must be laser-focused on controlling our costs, aligning our manufacturing footprint with market conditions and creating a more streamlined and responsive organizational structure.” Part of this cost alignment strategy includes identifying and focusing on core competencies in-house. As a result, the company announces plans to sell a fabrication components and parts facility it currently operates in Pecs, Hungary. Additionally, Terex Cranes will consolidate its 3 current manufacturing locations in Zweibrücken, Germany, into 2. 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. However, it will cease machine production in the Bierbach facility in 2017 and the facility will be sold. These consolidation and cost alignment strategies continue actions taken by the company in 2016 to make more efficient use of its manufacturing footprint. In 2016, Terex Cranes consolidated all North American crane production into the existing Terex manufacturing facility in Oklahoma City, Oklahoma. The pending sale of the Material Handling and Port Solutions business to Konecranes will include the cranes Montceau Les Mines, France, production facility, which manufactured 4 Terex all terrain crane models. Production of these crane models are being absorbed by other Terex manufacturing locations. “With the consolidation efforts started in 2016 and the announced changes in Hungary and Germany 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 Mr. 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.”
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