07.01.2003

JLG to close Bedford plant

JLG has announced that its Bedford, Pennsylvania facility in the US will be “temporarily idled” by the end of the fiscal year. The move comes as part of the latest phase of the company’s capacity rationalisation plan, introduced back in 2001, and will see production of selected JLG scissor lifts – currently being produced at the Bedford plant – integrated into its Shippensburg, Pennsylvania facility. Nearly 100 production jobs will also be transferred to Shippensburg.

“These actions will result in US$3,5 million of restructuring costs, $4,4 million of restructuring-related costs, and $1,6 million of capital expenditures,” said Jim Woodward, executive vice-president and chief financial officer of JLG.

The company expects that the Bedford closure, along with additional reductions in selling, administrative and product development costs from changes in its ‘global organisational’ and ‘process consolidations’, will generate annual savings of up to $20 million.

Commenting on the decision to close the facility, Bill Lasky, chairman of the board, president and chief executive officer of JLG said, “While facing the challenges of this economy, our most recent actions are consistent with the broader realignment efforts of our three-year, multi-dimensional strategic plan to further optimise performance.”