Filter content by area of interest
Ports & Terminals
Port AuthoritiesContainerBulkBreakbulk/General CargoRo-Ro/AutomotiveGTOs
Cargo Handling Equipment
STS CranesYard CranesMobile CHERo-Ro EquipmentBreakbulk EquipmentLow ThroughputBulk Handling Equipment
Shipping & Logistics
Container ShippingBreakbulk/General CargoRo-Ro ShippingDry Bulk ShippingLiquid cargoesLogistics
TOSPlanning & Optimisation TechnologyWiFiMobile ComputingPort Community SystemsAsset Tracking & Monitoring
Automated EquipmentGate AutomationRemote ControlProcess Automation
RailInland WaterwaysShortsea ShippingRoadAir-Cargo
Container Industry
Container manufactureContainer leasingRepair/StorageTradingConversion/Innovation
Operations/TransportContainer leasingEquipmentM&R/Storage
General cargoProject Cargo/Heavy LiftForest productsRo-Ro/AutomotiveAgribulks
Safety & Security
InsuranceHazardous cargoLashings/SecuringLegal/Regulatory
Civil Engineering
Port & terminal construction/designCivil & Consulting EngineersDredging & ReclamationMooring & FenderingLightingPaving & Surfacing
InsuranceLegal/RegulatoryAppointments/PeopleMergers/Acquisitions/RestructuringFinance/Financial ResultsTrade & Professional AssociationsBusiness/Commerce Miscellaneous
 View all Topics View all Topics A-Z
More View all Topics View all Topics A-Z

You are viewing 1 of your 1 guest articles

register  or  login  for full access to online news

Cargotec to retrench at MacGregor

Cargotec launches a programme to achieve annual cost savings of approximately €25M in MacGregor
Linked InTwitterFacebook

Cargotec is beginning statutory cooperation negotiations to achieve the desired cost reductions. According to preliminary estimates, says Cargotec, "efficiency improvement actions seek the reduction of around 260 full-time equivalent posts globally," MacGregor employed globally 2355 persons at the end of September 2016, so the intention is that more than 10% of the global workforce will go.

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, says Cargotec. "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."

Michel van Roozendaal, President of MacGregor, said: "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."

Reporting Cargotec's results to the end of September, CEO Mika Vehviläinen noted that "the challenging market situation continued in MacGregor. The global merchant ship market is facing overcapacity and new ship orders are at an exceptionally low level. Industry consolidation, alliances and possible new ship routes create uncertainty in the industry. We are continuing with our measures to lower the MacGregor cost level."

However, he added that Hiab's strong development continued during the Q3 2016 and profitability improved compared to the previous year. 2Hiab's core business orders were at a good level, but we did not receive any big defence industry orders as we did during the comparison period."

He continued: "Kalmar's result was also satisfactory; however, the pace of customer decision-making has slowed down, which could be seen in declining order numbers. Kalmar's long-term market potential is still strong: bigger ship sizes and the need to develop ports and make operations more effective require investments in port technology and automation. The number of potential projects is still large, but customers are delaying their investment decisions."

Linked InTwitterFacebookeCard

You may also be interested in...

ZPMC moves in

Bunking up the logs for easy moves

Pulp facts to the fore in Montevideo

Hyster clamps up on reel handling

Sizing up the breakbulk market

Getting on the intermodal track

Related Stories

Rhenus Arkon Shipinvest orders short sea bulkers

Rhenus-Arkon-Shipinvest has placed orders for the first four environmentally-fri...

Søren Toft to join MSC?

Reuters, quoting ShippingWatch, has reported from Copenhagen that Søren Toft was...

Konecranes into Morocco

Konecranes will deliver 16 RTGs to the Tanger Alliance at Tanger Med 2 in just n...

Winter Haven intermodal terminal developers win TT Club Safety Award

The 3rd TT Club Innovation in Safety Award was presented last night (13th Novemb...
Linked In