TEREX Corporation is closing 11 of its manufacturing and assembly plants around the world in a bid to reduce costs by $40m a year.
Among them is the former P&H factory in Conway, South Carolina where Terex’s biggest hydraulic rough terrain and truck cranes are assembled. This work will now be relocated by the end of the year to the facility in Waverley, Iowa where the booms are already produced.
Some 80 employees at Conway will lose their jobs, although 40 new jobs will be created in Waverley. Across the corporation 1,225 jobs are going, or 16% of the workforce as of 30 June 2001.
Of the other 10 facilities to close, four are operations of the recently acquired CMI Corporation, a manufacturer of crushing and screening equipment for road building. The other US facilities to close are: Royer Industries and Re-Tech in Lebanon, Pennsylvania; Standard Havens in Glasgow, Missouri; and Canica-Jaques in Vancouver, Washington.
In Europe, three facilities are being shut. The UK operations of Matbro (telehandlers) in Tetbury and the Benford (dump trucks) in Warwick are being moved to the Fermec (backhoe loader) factory in Manchester. Terex Aerials’ factory in Cork, Ireland is also being closed.
‘Given the number of acquisitions we have made over the past few years and current market conditions, it makes sense for us to step back and adjust our structure,’ said Ron DeFeo, Terex chairman and chief executive officer.
Terex will take a charge of $30m to $35m over the third and fourth quarters of 2001 to pay for the restructuring.
