On September 25, Finnish industrial group Konecranes announced that it will close down its production facility in Ettlingen, Germany, by March 31, 2010.
According to a statement released by the company, the closure will affect about 85 employees in crane production and assembly, component production and plant administration. Manufacturing at Konecranes' factories in Künzelsau and Liebengrün will continue unchanged.
The factory closure is part of Konecranes' previously communicated decision to restructure its organization and reduce costs, based on a sharp drop in demand and on a low industrial capacity utilization rate. The action is included in the estimates announced in the company's second quarter interim report 2009, i.e., an annual cost saving target of €100 million in 2010 compared to 2008, and €15-20 million restructuring costs to be booked during the second half of 2009.
Management and the local workers' council are to start negotiations on personnel arrangements. The annual production of cranes in Ettlingen represented approximately 15 percent of Konecranes' industrial crane output in 2008.