KCI Konecranes will outsource the production of end carriages for its Standard Lifting Equipment Business Area to a new company established by former employees of Konecranes's Urjala production unit.

Konecranes managing director, hoist production, Ari Kiviniitty said Urjala Works Corporation's 70 staff members would continue to produce the end carriages "as they were doing for Konecranes".

"Being an independent company now, they can have a wider customer base. As for Konecranes, it gives us greater operational flexibility and the possibility to concentrate on end-product assembly, development and maintenance services," Kiviniitty said.

The agreement is part of Konecranes's internal re-engineering program, launched in 2003.

It is not expected to have any effect on Konecranes's financial results this year as Konecranes does not have an ownership stake in the new company.

Kiviniitty said the manager of Urjala Works is former Konecranes Urjala factory manager Maratku Koivula.