COST SAVINGS LURE SEES NACCO DUMP 680 WORKERS AT US PLANT

Mayfield Heights, United States
Monday, 22 Jan 2001

MAYFIELD HEIGHTS, USA -- In order to achieve "significant cost savings", Nacco Materials Handling Group (NMHG) will cut 680 jobs under new plans to quit production at its Danville, Illinois, plant.

NMHG will outsource, consolidate and phase out its Danville lift truck assembly operation within 18 months.

While the Danville plant, which employs 680 people, will be closed, NHMG says the 280 employees at its Danville parts distribution centre will not be affected.

Lift truck operations at the Danville plant will be consolidated into NMHG plants in Berea, Kentucky, and Nijmegen, The Netherlands. Some lift truck components currently manufactured in Danville will be sourced to outside vendors or manufactured at NMHG's Lenoir, North Carolina, plant.

A NMHG internal study concluded that consolidating its assembly operations would "offer significant cost savings and improve ... worldwide facility utilisation", a company statement said.

The decision to phase out the Danville plant means NMHG will have a restructuring charge and related plant closing charge of about US$9 million after tax for the fourth quarter of 2000.

NMHG said issues such as employee severance and benefits would be negotiated with the Independent Lift Truck Builders' Union for employees covered by a collective bargaining agreement.

Discuss Forkliftaction.com News stories in the Discussion Forums!

Include and Exclude search categories: