06.10.2009

Hiab- Kalmar merger costs more

Cargotec, owner of Hiab and Kalmar has announced that it previously underestimated the cost of merging the two businesses. It had allowed €50 million from the process but now expects that to rise to at least €70 million.

The effect of the extra cost which also involve further cuts than initially planned, will push Cargotec’s 2009 operating result from being marginally positive into a loss.

The resulting reorganisation and capacity adjustment measures – including all those from 2008 - are expected to reduce headcount at the group by an additional 500 world wide. The company says that its current plans will reduce costs by at least €150 million

The new combined business sector ‘Industrial and Terminal’ came into effect at the beginning of October, while the existing Hiab and Kalmar organisations continue until the year end to help ensure a smooth transition.

The latest round of headcount reductions will largely impact Finland and Sweden.