Terex Cranes will shut down its fabrication and assembly manufacturing facility in Wilmington, North Carolina by the end of the year.
The facility does some assembly and fabrication of tower cranes and small crawler cranes. Service and aftermarket support for these product lines will remain in Wilmington for the foreseeable future, according to a press release. Parts will be housed in Southaven, Mississippi.
Approximately 90 employees will be laid off, according to the press release. Of those employees, about 60 are production workers and the rest are administrative positions. "For union-represented team members, all terms of labor contracts will be honored, and for other team members, severance pay and outplacement assistance will be provided," Terex said.
"While the economy is beginning to improve, manufacturing capacity is greater than needed to meet foreseeable market demand," said Kevin Bradley, president, Terex Cranes' business segment. "The decision to cease plant operations in Wilmington was not an easy one because we know this action affects team members and their families."
Bradley said the company will continue to consolidate its manufacturing footprint, consistent with the needs of its global customer base.
"Terex is always looking to maximize our global manufacturing footprint to get the most benefit, and after a lot of evaluation it has been determined that we can support the tower and crawler crane products at a different facility," Frank Bardonaro, vice president, told American Cranes & Transport. "It was a difficult decision because of the outstanding workforce we have in Wilmington, but it is a strategy to become more competitive and cost-effective in this economic environment."
From a customer standpoint, Bardonaro said the closure will be seamless. "Our customers will be able to support our products through their existing contacts and representatives. This was purely a strategy on the part of Terex to do a better job of utilizing our existing facilities around the world."
He termed the plant closure as "a very structured wind down."
Terex purchased the Wilmington facility from American Crane in 1998.