Epiroc to close key attachments production plant in Germany
16 November 2023
Swedish company Epiroc is close one of its manufacturing plant, as part of plans to consolidate its European operations for the manufacturing of hydraulic attachment tools.
The company has announced that it will shut down its facility Essen facility in Germany by the end of 2025, saying that the move will “to promote efficiency within its Tools & Attachments segment” and help improve its overall competitiveness.
The company said the closure of the Essen site means that around “130 employees will be affected”, with all of the workers expected to be made redundant.
Helena Hedblom, Epiroc’s President and CEO, said: “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.
“We will ensure that our customers get the best products and solutions possible also onwards.”
Over the coming year, the production of excavator tools and other existing product lines in Essen will be transferred to its manufacturing facilities in Kalmar and Fagersta in Sweden, and in Dermbach, Germany.
The restructuring is expected to cost Epiroc around SEK 155,000,000 (US$14.6 million), which will be reported in its 2023 fourth quarter financials.
In addition, the company is also intending to close another of its facilities. While Epiroc also has manufacturing of hydraulic attachment tools in the United States, India and South Korea, it has further “decided to cease production at its relatively minor rotary pipes and accessories facility Perth, Australia”.
The Perth facility also belongs to Epiroc’s Tools & Attachments division, and its closure also aims to “to increase efficiency and promote sustainable profitability”. Epiroc says its aim in this case is that all the facility’s employees will be offered new jobs with the company.