Hydraulic tool manufacturing in Europe will move to other facilities, while the Perth rotary pipes and accessories facility will also close
Mining and construction machinery manufacturer Epiroc has announced that it will be closing factories in Essen and Perth to improve efficiency.
It says that it is moving its hydraulic attachments manufacturing from Essen in Germany to other sites in order to promote efficiency and improve competitiveness.
Epiroc will consolidate the hydraulic attachment tools manufacturing in Europe to other existing production facilities in Kalmar and Fagersta, Sweden, and Dermbach, Germany. Epiroc’s operation in Essen is planned to be closed by the end of 2025, with around 130 employees affected.
“We regret that this consolidation will affect our colleagues in Essen. These actions, however, are necessary to safeguard that we remain competitive within hydraulic attachment tools,” Epiroc president and CEO Helena Hedblom says.
“We will ensure that our customers get the best products and solutions possible also onwards.”
The restructuring cost is estimated at about MSEK 155 (A$22.4 million) and will be reported in the fourth quarter 2023.
In an additional activity to increase efficiency and promote sustainable profitability, Epiroc has decided to cease production at its rotary pipes and accessories facility in Perth, Australia. Epiroc says that the facility’s employees will be offered new jobs in the company. This facility also belongs to the Tools & Attachments segment.