A Kalmar DCE100-6 forklift.

Employees from Kalmar's operations in Ljungby have started relocating to the handling equipment manufacturer's Lidhult facility, about 40 km away, as part of the company's restructuring plans.

The transfer, which involves about 150 people was announced earlier this year and affects Kalmar personnel working in the R&D, technology, sales, sourcing, logistics and assembling departments.

Ljungby will continue to house the service operations, finance and accounting, according to Kalmar's parent Cargotec.

Axel Leijonhufvud, Kalmar senior vice president of product supply, says employees support and understand the need to relocate the majority of Kalmar's operations in Ljungby.

"We have had close co-operation and negotiated with eight different unions to find the best possible solution for the employees, including early retirement plans, new positions in the company, help to find jobs outside the company, skills training and help to switch careers and set up own businesses," he says.

Cargotec estimates that the relocation will result in annual savings of EUR2 million (USD2.9 million) and will cost about EUR4 million (USD5.7 million). Another EUR3 million (USD4.3 million) will be invested in the Lidhult facility to accommodate the new departments.

Cargotec says the transfer cost will be covered by the EUR35 million (USD50 million) it is investing in its "On the Move" restructuring operations aimed at adapting to the current market conditions, developing work efficiency. Cargotec also plans to consolidate the Hiab and Kalmar sales and service network in the European, Middle Eastern and African region.

Asked about job losses, Leijonhufvud says that since 6 November 2008, about 220 employees have left Kalmar's Ljungby and Lidhult facilities due to "relocation and lower order intake".

The reorganisation, a part of Cargotec's long-term goal to raise competitiveness and sustain a leading position in the European market, will be finalised this year.

Kalmar assembles reach stackers, container handlers and forklifts in Ljungby and Lidhult. In January 2009, Cargotec employed about 380 people in Ljungby and 340 people in Lidhult. It employs 2,400 people in Sweden.