The negotiations were launched in November 2012, as Cargotec sort to improve the profitability of its Hiab business area and to respond to the global load handling equipment market situation. Knuckleboom cranes like Hiab’s were struck particularly hard by the impact on residential construction of the global financial crisis.
Stargard will now take responsibility for small (less than 11tm) and large (21tm-28tm) knuckleboom cranes. Hudiksvall will continue to build other parts of the loader crane range, and specialist recycling and forestry cranes. Product development, sales and after sales support as well as service and other related support functions will also continue to be located in the Swedish town.
Cargotec said it was vital to develop a more competitive production and transport set-up closer to existing and future customers and partners in the long term. Currently 60% of Cargotec sales are outside of EMEA, but 59% of the company’s personnel are based there.
In June 2012, Cargotec decided to proceed with further investment in its multi-assembly unit (MAU) in Stargard Szczecinski in northern Poland. The value of the investment for a new painting and assembly area was close to €20m, with the planned new area is estimated to be completed in 2014.
Cargotec’s multi-assembly unit in Poland started operations in 2010 and it has delivered a range of Cargotec equipment to customers globally. The business said that the planned new painting and assembly area would improve the capabilities and efficiency in assembling load handling equipment.
At its AGM this year Cargotec revealed that profitability from operations had fallen by 4.7%. Cargotec booked €26m of restructuring costs in the fourth quarter of 2012; at the same time, it said it anticipated cost savings of €30m in 2013.
