WBAY.com reports, the Manitowoc Company has announced plans to relocate crawler crane operations from Manitowoc to Shady Grove, Pennsylvania.
The company says the transition will begin in the third quarter, and will likely be complete by the middle of 2017.
“In the press release it said the crawler division. Is that going to be the boom division, too? I don’t know, nobody knows that yet,” said Manitowoc alderperson Jim Brey.
The company says the move will “optimize its manufacturing footprint, reduce costs and expand margins.”
“In total, this initiative is expected to generate annualized pre-tax costs savings of $25-30 million,” according to a statement from Manitowoc Company.
There was no immediate word on how many jobs would be impacted by the move.
“But even with the crawler division, I hate to estimate the number of jobs that might be going, but it’s going to be significant,” Brey said.
Manitowoc Company says it will keep its corporate headquarters, product engineering, and support functions in the Manitowoc area.
“After a comprehensive analysis and review of our current manufacturing footprint, coupled with current market conditions, we believe this restructuring initiative will ensure that our business continues to meet and exceed the needs of our customers every day. We further recognize that this will have a personal impact on people who have been dedicated to Manitowoc. We thank them for their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process,” said Barry Pennypacker, president and chief executive officer, The Manitowoc Company, Inc.
Manitowoc Company is a leading manufacturer of cranes and lifts, according to the company. It has facilities in 20 countries.
In 2008, Manitowoc expanded the facilities to include three new buildings with a significant capital equipment expenditures. One of the new facilities was a 20,000 square-foot building used for assembling Manitowoc’s larger crawler models, the 18000 and the 21000.
The 2nd building, the 33,000 square-foot final assembly and paint addition contained a paint booth and oven, a re-assembly area, and two additional loading bays.
The final building addition was a employee services area which includes locker rooms, a lunch room, and a tool room.