Opening and closure at Konecranes
By Euan Youdale14 June 2010
Konecranes will close its assembly plant in Windsor, Wisconsin, USA by the end of October 2010.
The industrial and dockside crane manufacturer said low equipment demand in developed markets was one of the reasons for the closure, along with a previous acquisition.
"Closer integration of Morris Material Handing Inc's (P&H) activities into Konecranes' operations and widening usage of corporate-wide products have reduced production volumes at the Windsor plant in 2010," said a company spokesman. Konecranes acquired Morris Material Handling, a UK crane and hoist manufacturer, in 2005.
Once the Windsor factory is closed, some remaining activities will be transferred to other Konecranes locations in the USA. Twenty-seven of the 47 employees at the Windsor plant will be offered jobs elsewhere. The company forecast restructuring costs, mainly lease-related, of €3 million (US$3.7 million) connected to the factory closure.
In May, Konecranes revealed plans to build an office building in Hyvinkää, Finland. The new building will boast some 3,770 square metres of office space and will complement the company's existing visitor centre in the town.
Construction will start during the third quarter of 2010 and complete in the same period 2011. It will consist of four floors and house 100 employees.
"This decision is an important element in a wider programme to develop Konecranes' operations at the Hyvinkää site. We have developed our manufacturing and research and development (R&D) facilities in the area, and now we are completing the programme with a new office building. We feel that having different functions - R&D, manufacturing and management - at the same site carries a lot of value," said Pekka Lundmark, Konecranes president and CEO.