Manitowoc Crane Group is closing down the operations of boom truck manufacturer National Crane, and relocating production from Waverly, Nebraska to Grove’s Shady Grove factory in Pennsylvania. Manitowoc said that the closure would take place ‘by the end of 2003’.
According to Manitowoc, ‘the transfer of production will improve long-term utilisation and productivity given the advanced systems already in place at Shady Grove’.
Manitowoc Crane Group president Glen Tellock explained to ConnectingCranes that while National remained a strong performer, and while he recognised that some people might view the decision as “an accountant’s decision”, the move was justified by the direction in which the industry was heading. With competition becoming ever more fierce, the best way to defend National’s market leading position was to get manufacturing costs down, he said.
Over the past 10 years, Terex has eroded National’s market share from the mid 50s to around 40%, to a point where the two companies now share market leadership.
In a separate statement released by the company, Tellock said: ‘As we continue to integrate Grove Worldwide, we will fully leverage the synergies available in order to ensure that the Crane segment is sized for profitability under current market conditions and that the business is positioned to take off when the economy improves. Customers should be assured that our National Crane field sales and service support staff are not expected to change.
‘Operationally, our Shady Grove plant offers world-class manufacturing equipment, processes, and systems. Our integration plans will include the creation of specialised teams from both locations to ensure a smooth transition, and our customers will continue to receive the highest quality products at exceptional values. Product quality and reliability will not be compromised. We will continue to focus on investing in new products, and our customers will continue to be supported by the highest quality sales and aftermarket support team in the industry,” Tellock added.
Proceeds from the sale of assets are expected to equal or slightly exceed the after-tax costs associated with the move, the company said.
National Crane evolved from a small, privately owned family business in the 1950s. In 1962 the company was established at the Waverly, Nebraska site and in 1963 adopted the name National Crane. In 1978 the company was acquired by the industrial conglomerate Kidde, which had already acquired Grove Manufacturing Company. In 1987 Kidde, Grove and National all merged into Hanson Industries. In 1998 Grove Worldwide, which included National, was bought by the Keystone group of investors. In August 2002 Manitowoc took over Grove, including National, and subsequently sold its own Manitowoc Boom Truck business after the competition authorities ruled that it must dispose of one of its boom truck businesses.
