Terex is beginning to make its mark at Demag Mobile Cranes and plans are taking shape.
Among the early departures are finance director Wilfried Hubert and sales director Bernhard Düser.
Hubert and Düser previously were two thirds of a ruling triumvirate with engineering director Alexander Knecht. Knecht is now the sole managing director.
But, overall, Terex insists that it has been a lot less radical in its actions at Demag than it was with previous acquisitions There were 2,200 Demag employees on takeover. How many there are by the end of the year depends on the market, Terex Cranes president Fil Filipov, said. However, he said it would ‘probably be 1,800 to 2,000’.
‘It is not slash and burn. We are just adjusting it,’ he said.
There has still been plenty of negative publicity in the local press in Demag’s home town of Zweibrucken, with the trade union IG Metall leading the vocal objections to the cuts that have been made. For Filipov and his son Steve, who is Terex Lifting group president Europe and International, these fights are nothing new. In fact it is quite tame compared to previous battles.
Says Steve: ‘It’s always a negotiation. IG Metall have to do their job and we have to do our job. We will work with them but not for them. We’re all here to build cranes. It’s why we get up in the morning.’
Meanwhile plans are developing rapidly. These include: In Japan – shutting the Demag company store, opening discussions with IHI about a distribution agreement. If Terex can distributes IHI crawlers in Europe (as it does in North America), IHI can distribute Terex and Demag product in Japan.
In Singapore – Demag company store to close. Moving to a dealership.
In Australia – Demag operations integrated into Terex. Coverage is the Franna factory in Brisbane and company stores in Sydney, Perth and Melbourne.
In Italy – Demag operations being folded into Terex Bendini.
In France – PPM production restricted to reachstackers and two axle ATT 400 cranes. This product is to be renamed AC 35.
Demag’s Paris operation will handle all Terex and PPM sales, service and marketing for France.
In Germany – PPM brand to be dropped totally in this market. Likely to disappear gradually elsewhere.
In USA – Heinz Ott, head of Demag’s US operations, was one of the first to go. Demag’s east coast operations are likely to be integrated with Terex American’s facility in Wilmington, North Carolina where there is plenty of space for growth.
New or forthcoming models from Demag include a 300t crawler, the CC 1500, designed for North America to take on the Manitowoc 999 All terrains in the pipeline include the AC 200, AC 160 and AC 130 (upgraded AC 120).
A fourth city crane model is planned to head off Liebherr’s planned LTC 1050/1 Terex’s Compact Truck project is officially still alive and handed over to Demag engineers. They will explore whether any aspects of Compact Truck technology that Terex is licensed to use can be transferred to enhance any Demag product.
For example, the feasibility of offering all city crane models with the option of hydrostatic drive is being investigated.