Forklift News - Konecranes expands to the US and outsources operations

Konecranes expands its machine tool service business to the US.

Konecranes has expanded its machine tool service business to the US by buying Machine Tool Solutions Unlimited in Cincinnati, Ohio.

"This is a technically challenging market with strong growth potential in the US," says Tom Kurtz, general manager of Konecranes’ machine tool service business for the Americas.

Machine Tool Solutions was established in 2003. It provides machine tool rebuilding, control retrofits, preventative maintenance and calibration and repair services. The company’s annual net sales for 2008 were about EUR3.5 million (USD5.2 million) and it employs 18 people.

Konecranes says the acquisition is an opening for it to fulfill its goal of building a machine tool service network in the Americas. The acquisition enables the company to expand its service offering to North, Central and South America.

Before the acquisition, Konecranes’ machine tool service business was concentrated in the Nordic countries and the UK.

The acquisition value is not disclosed.

Separately, Konecranes has signed a contract to outsource its terminal operations in Hyvinkää to Finnish company HUB Logistics Packaging Oy.

Twenty employees will be transferred to HUB Logistics, retaining their existing jobs. The employees were involved in Konecranes’ terminal operations, which include the reception of goods, packaging and dispatch functions. The change takes effect on 9 November.

Konecranes says the outsourcing will result in cost savings, increased productivity and flexibility.

"[It] supports Konecranes’ strategy of focusing on its core business – improving our customers’ productivity and profitability by providing lifting equipment and services with unrivalled reliability and quality," says Juha Anttila, director of supply operations in heavy lifting.

Anttila adds that the outsourcing is estimated to save EUR100 million (USD147.3 million) annually starting in 2010, compared to 2008.

HUB Logistics’ service offering includes the entire logistics process from managing and developing activities to financing working capital. Before the outsourcing, Konecranes bought packages and packaging services, and hired personnel from HUB Logistics.

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