Hiab to restructure in Sweden

Hiab, part of Cargotec, will restructure its operations in Hudiksvall, Sweden.

Loader cranes, recycling cranes and forestry cranes are manufactured at the Hudiksvall facility. The plan is to shift the focus from manufacturing to developing and testing new products. There are also plans to have an after sales and spare parts department at the facility, a company spokesperson said.

The plan is due to begin during the first quarter of 2015. 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.”

According to the manufacturer, the changes could result in annual cost savings around €11 million (US$ 15 million). The changes will generate restructuring costs of approximately €14 million ($19 million), a company spokesperson added.

Hudiksvall employs around 300 staff. Hiab has informed its employees about the plan and is starting co-operation negotiations in Hudiksvall. The planned measures may lead to a reduction of approximately 150 employees in Hudiksvall, Hiab said.