Tuesday, October 20, 2009

Konecranes Streamlines Materials Handling Operation In UK

Reduced Demand Means Consolidation to Cut Costs
Shipping News Feature

UK – FINLAND – Despite new orders throughout the group Finnish owned Konecranes are to close their Loughborough based crane manufacturing plant and move the operation to East Kilbride, Scotland. The action is part of an overall slimming down of the group in tough economic times.

Earlier this month cutbacks meant staff at the company headquarters being laid off and the group announced it had reduced staff levels by 850 since last year and foresaw approximately 750 more redundancies overall before the end of the year. In 2008 group sales topped € 2 billion with a presence in forty three countries.

A new company Konecranes UK Ltd will take over the activities of all British operations including Konecranes Service Ltd, Konecranes (UK) Ltd and Morris Materials Handling. Formed in 1884 the loss of the Morris name, formerly the UK’s largest crane manufacturer, is particularly poignant. It is believed the company will continue to employ a total of around 450 staff in the UK.