23.08.2007

Manitowoc to build cranes in Slovakia

The Manitowoc Company has announced that it has reached an agreement to acquire a manufacturing facility from Valcovna profilov a.s. in Saris, Slovakia.

The facility, will be refurbished and re-equipped and will serve as the final manufacturing and assembly site for Grove, Potain, and Manitowoc cranes being delivered to customers in East European markets, particularly in Russia and the CIS.

Manitowoc will initially use the new facility for the production of Potain’s range of top-slewing tower cranes. It will handle the latter stages of the production process such as painting, assembly, testing and shipping.

The company also plans to manufacture Potain’s K masts at the plant using chords welded its factory in Moulins, France.

Eric Etchart, president of Manitowoc Crane Group, said:
“Customers in Eastern Europe, Russia and the CIS will benefit from lower shipping costs and faster delivery schedules with the introduction of this Slovakian facility,”

“Meanwhile, by re-developing an existing facility on a brownfield site, we will be able to get this factory live faster and at a lower cost.”


Glen Tellock, Manitowoc's president and chief executive officer said: "Our move into eastern Europe is another example of our commitment to bringing design and manufacturing closer to the end customer. Slovakia is an excellent addition to our global footprint, as it reduces shipping costs and delivery schedules to the fast-growing Eastern European and Russian construction markets.”

“Our selection of an existing industrial facility in Saris will also reduce development costs and enable us to begin production on a faster timetable than a greenfield project would allow. In addition, we will have access to local component suppliers and skilled manufacturing labor at rates that are cost competitive with other European markets."

The company expects to begin production at the Saris facility in late 2007.

Financial terms of the transaction have not been disclosed, but Manitowoc is revising its full year 2007 capital expenditure forecast, following this transaction from $70 million to $85 million.