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 company said in its press release.
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.
Cargotec 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.
