The move will end production responsibility for loader cranes, recycling cranes and forestry cranes at the facility. Assembly operations in Hudiksvall would cease gradually by the first quarter of 2015. The measures may also lead to the number staff at Hudiksvall being halved from 300.
The manufacturer explained that the plan was based on an analysis initiated due to tightening competition and increasing pressure for cost efficiency in order to achieve a long-term sustainable profitability level. Hiab said that it expected to save approximately €11m annually from the changes with full effect from the year 2016. It also predicted to generate restructuring costs of approximately €14m.
Mika Selänne, Vice President, Hiab Supply said: "I want to emphasise that this plan is not because of any dissatisfaction with the current assembly work. The plan is entirely based on the need to improve Hiab’s profitability and to reduce our cost structure to a competitive level."
