Doosan Infracore has announced it will close its excavator factory and parts distribution facility in Frameries, Belgium with the loss of up to 313 jobs.
The company said that lower than anticipated European demand for excavators since 2010 had been a key factor in the decision. It added that the facility had been accumulating losses since 2008, and that there was no indication of a turnaround in the foreseeable future.
“The company launched many initiatives in order to reduce the costs of Frameries and to protect employment. Despite all these efforts and all the improvements made, Frameries’ manufacturing costs are still too high. This means that Frameries cannot operate being both profitable and competitive,” said a statement from Doosan Infracore Europe.
Plant general manager Guiseppe Pappalardo said, “We have made the maximum effort to find an economically viable solution for maintaining production activity at the Frameries site. For us the only way to continue to trade is to reduce the company’s annual losses, supplying our European customers by fully sourcing from the company’s Korean production facilities”.
The statement added that Doosan Infracore Europe would continue the trading activities.
The decision was reportedly met with surprise from the workers’ council. Local media reports there has been vandalism at the factory overnight following the closure announcement.