Cargotec restructures its operations in Tampere

As a result of continuing low demand of cargo handling equipment Cargotec starts co-operation negotiations in its unit in Tampere, Finland, about extending the on-going temporary layoffs to continue until further notice and possible permanent layoffs. The planned possible temporary layoffs to be continued until further notice are estimated to affect some 300 people and the permanent layoffs are estimated to affect some 90 people. The planned permanent layoffs are partly due to a planned re-organisation. The co-operation proceedings initiated now include a total of some 400 people. These measures are necessary to adjust the production capacity to meet the low demand of products and to ensure the company's competitiveness in the global markets. In order to improve profitability, Cargotec continues to implement its global supply strategy to get closer to the markets and to lower cost environment. To reach this target the company plans to rent production and office facilities in Poland and start assembly of spreaders and terminal tractors within this year. The capacity will depend on the market situation and the demand for the products. In the initial stage the focus is on recruiting the key personnel and setting up the training of product assembly. Cargotec employs close to 1,600 people in Finland.

Source: Transportweekly