CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 25 OCTOBER 2016 AT 12:03 PM (EEST)
Cargotec launches a programme to achieve annual cost savings of approximately EUR 25 million in MacGregor
Cargotec is launching a programme to achieve annual cost savings of approximately EUR 25 million and beginning statutory cooperation negotiations. According to preliminary estimates, efficiency improvement actions seek the reduction of approximately 260 full-time equivalents globally. MacGregor employed globally 2,355 persons at the end of September 2016.
The objective of the savings is to adapt to the prevailing market situation faced by MacGregor. In addition, the aim is to ensure long-term competitiveness on global markets and to continue the improvement of operational efficiency.
MacGregor's market situation is challenging. In the offshore industry, the low price of oil keeps investments at an unprecedentedly low level, which affects the demand for offshore load handling solutions. The demand for service has declined as parts from decommissioned ships are increasingly being used as spare parts. There is overcapacity on global merchant ship markets, and orders for new vessels are at an exceptionally low level, which decreases the demand for MacGregor's products and solutions.
Cost savings are sought through the planned restructuring of operations and potentially with personnel reductions. It is estimated that the measures affect especially the operations in Norway, China, Sweden, Finland and Singapore.
The planned savings measures are estimated to result in restructuring costs in the final quarter of 2016 and in 2017.
"Even in this challenging market situation MacGregor is the leading and the strongest player in the maritime cargo flow, mooring and load handling markets. As a result of these difficult but necessary actions MacGregor will become more agile. We have strong competence to help our customers operate more efficiently," says Michel van Roozendaal, President of MacGregor.
Mikko Puolakka, Executive Vice President, CFO, tel. +358 20 777 4105
Hanna-Maria Heikkinen, Vice President, Investor Relations, tel. +358 20 777 4084
Cargotec (Nasdaq Helsinki: CGCBV) is a leading provider of cargo and load handling solutions with the goal of becoming the leader in intelligent cargo handling. Cargotec's business areas Kalmar, Hiab and MacGregor offer products and services that ensure our customers a continuous, reliable and sustainable performance. Cargotec's sales in 2015 totalled approximately EUR 3.7 billion and it employs over 11,000 people. www.cargotec.com