Terex Cranes will be launching new products in early 2017 while continuing to consolidate its manufacturing operations and reducing its workforce by 30%.
Early in 2017, Terex Cranes plans to launch a new flat top tower crane, re-enter the City class crane market and introduce a 300t 6-axle crane. At Conexpo-CON/AGG held in March 2017 in Las Vegas, USA the company will also show a new SK series hammerhead tower crane.
These innovations will follow the reintroduction of the Demag brand and the launch of a new Demag 5-axle product line and the Terex global rough terrain range, which took place this year (2016).
Terex Cranes president, Steve Filipov said, “We are committed to being the most customer-responsive company in the industry through providing valuable product and service solutions that produce an excellent return on the customer’s investment.
“For us to deliver on these commitments and innovate the technologies of today and tomorrow, we must be laser-focused on controlling our costs, aligning our manufacturing footprint with market conditions and creating a more streamlined and responsive organisational structure.”
Part of this cost alignment strategy includes Terex Cranes identifying and focusing on core competencies in-house. As a result, the company plans to sell a fabrication components and parts facility it currently operates in Pecs, Hungary. Terex Cranes will also consolidate its three current manufacturing locations in Zweibrücken, Germany, into two. The company will continue manufacturing operations of the Demag crawler and all terrain crane lines in its Dinglerstrasse and Wallerscheid locations and make multimillion-dollar investments in both facilities to support on-going manufacturing operations. However, it will cease machine production in the Bierbach facility in 2017 and the facility will be sold.
These consolidation and cost alignment strategies continue actions taken by the company in 2016 to make more efficient use of its manufacturing footprint. In 2016, Terex Cranes consolidated all North American crane production into the existing Terex manufacturing facility in Oklahoma City, USA. The pending sale of the Material Handling and Port Solutions business to Konecranes will include the Cranes Montceau Les Mines, France production facility, which manufactured four Terex all terrain crane models. Production of these crane models are being absorbed by other Terex manufacturing locations.
“With the consolidation efforts started in 2016 and the announced changes in Hungary and Zweibrücken in 2017, the Cranes business global headcount will be reduced by approximately 30%. While these decisions are difficult to make, they are necessary to build a stronger, more focused and efficient Terex Cranes that will continue to innovate and grow,” said Filipov. “The steps taken will allow us to continue to invest in product innovation and service to drive customer satisfaction and the resulting business success.”