11.02.2014

Hiab to restructure Swedish operations

Hiab plans to restructure its operations in Hudiksvall, Sweden in an effort to save costs and achieve long-term profitability.

It is shifting from manufacturing towards new product development and testing as well as after sales and parts support. Manufacturing of loader cranes, recycling cranes and forestry cranes will gradually come to an end in Hudiksvall 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 restructuring is expected to result in annual cost savings of approximately €11 million from 2016. Restructuring will cost about €14 million. Employees have been told about the plan which may lead to a reduction of half of the 300 employees in Hudiksvall.