In 2016, Cargotec launched a programme to achieve annual cost savings of approximately €25 million by seeking efficiency improvement and cost savings. The global statutory cooperation negotiations have been finalised resulting in restructuring of operations and reducing of 230 full-time equivalents globally. The measures are affecting especially MacGregor operations in China, Finland, Norway, Singapore and Sweden.
In addition to the above measures, and to support MacGregor strategy to apply asset light business model, MacGregor has made an agreement to sell assets of its production facility in Uetersen, Germany, to a newly founded company Uetersener Maschinenfabrik GmbH. The deal was closed in December 2016.
The restructuring costs are estimated to be €31.5 million in 1Q16.
"These are difficult steps we are taking, and they will affect to people who have contributed to MacGregor's success. However, we need to adapt to the current reduced demand whilst maintaining our industry leadership position. Taking into account the current market environment, we aim to be profitable with these measures. At the same time, we continue to invest in new segments where our presence has been limited in the past, as well as in new technology. We also put a lot of focus on our service business, and maintain a connection with our customers throughout the whole life-cycle of their assets and offer solutions to improve our customers' operations. We have an extremely strong competency in order to help our customers operate more efficiently," says Michel van Roozendaal, President of MacGregor.
Read the article online at: https://www.drybulkmagazine.com/material-handling/23012017/cargotec-finalises-statutory-cooperation-negotiations/