05.06.2013

Terex Cranes to restructure German production

Terex Cranes is to restructure its German production facilities in order, it says, to adjust to current demand and improve its competitive position.

The changes will mean a loss of up to 200 jobs, largely at the company’s Wallerscheid plant. The move follows numerous efforts since 2008 to reduce costs while maintaining the full workforce, these have included short time working, a reduction in temporary staff, flexi time and other measures.

Other moves will include changes to a production bonus scheme which, according to a company spokesman is out of proportion with industry standards and pays out regardless of the success or not of the business. The intention behind this change is to protect as many production jobs as possible he said.

The process is only just beginning and with the company opening talks with the works council in order to find a socially acceptable way of dealing with the changes and ensuring that the lay-offs are organised with the minimum of disruption. The full restructuring is expected to be completed by early 2014.

The company does not expect a significant improvement in demand following lower sales in several European markets, until sometime next year.

While Terex has confirmed these changes and negotiations, it has not planning to issue a formal statement or press release on the subject.

Vertikal Comment

Terex has been battling with a number of issues at its German plants, which it acquired with Demag mobile cranes in 2002, for some time.

With several European markets now very quiet it looks as though it has decided to tackle the issue head on now, in order to adjust to the current economic climate and to be ready for the expected strong improvements likely to begin to flow through sometime next year.