Konecranes looking for a new buyer for straddle carrier plant in Würzburg

Konecranes is looking for a new owner for its straddle carrier manufacturing operations in Würzburg, Germany, the company revealed in its Q1 interim business report.

“At the moment, our priority is to find a new owner for the site to outsource our straddle carrier manufacturing, but we cannot rule out a possible ramp-down of production. In any case, we will continue to be a leading provider of straddle carriers and related services in the future, but in ways that fully leverage our existing global supply chain footprint,” the company said.

Explaining to WorldCargo News the motivation behind the decision, Konecranes President and CEO Anders Svensson said the move is part of the company’s ongoing efforts to enhance efficiency, following a review of both internal and external operations.

“We always review our internal footprint and external supplier footprint under our initiative to accelerate efficiency. Here, we are examining the operating model for straddle carriers, a product site that is particularly sensitive to market fluctuations and order intake,” Svensson added.

He contrasted this with other products in the ports sector, such as RTGs, which have a different operating model with outsourced manufacturing, resulting in lower sensitivity to market changes. Svensson noted the manufacturing business was very sensitive to market swings and order intake for this specific product, unlike outsourced manufactures that also produce other products.

“We want to progress as quickly as possible to find that buyer and then transfer people, facilities, and operations to them,” he said.

While unable to provide specific details on the progress of the process, Svensson indicated that other initiatives might be necessary to manage operational excellence effectively.

The plans were revealed as part of the company’s quarterly report for the first three months of 2024.

Konecranes reported a 51% year-on-year decrease in order intake for its port solutions business segment in Q1. Industrial equipment’s external orders decreased 29.7% in comparable currencies against a strong comparison period, while the company’s service business segment had a strong quarter, having reported order intake increase of 3.7% and sales increase of 5.1% year-on-year.

Overall, the company’s order intake in the first quarter was EUR 909.1 million (1,289.6), down by 29.5 percent year-on-year. The order book stood at EUR 3,046.4 million (3,281.4) at the end of March, -7.2 percent down year-on-year.