Konecranes has initiated actions to lower its cost base in Europe, including closing down unprofitable units. The actions are expected to affect about 125 employees and save the company EUR9 million (USD11.5 million) in costs annually.

About 100 employees in its "Business Area Service" are expected to be affected as the company restructures operations in Austria, Belgium, Denmark, Finland, France, Germany, the Netherlands, Norway, Spain, Sweden, the UK and Ukraine.

Konecranes says it plans to "close down unprofitable units, merge operations, reduce personnel and streamline administration". It targets annual cost savings of about EUR7 million (USD8.9 million) through these actions.

The company also expects to book restructuring costs of about EUR6 million (USD7.6 million) for the fourth quarter of 2011. The restructuring actions are expected to be implemented by the end of the first quarter of this year.

For "Business Area Equipment", Konecranes will restructure some of its operations and production in Austria and Germany. The assembly of air balancers in Thalgau, Austria is planned to be combined with the company's overall crane component supply chain. Konecranes' Industrial Cranes business unit is also planning to consolidate its German operations.

About 20 employees in Germany will be affected by these actions. Konecranes targets annual cost savings of about EUR2 million (USD2.5 million) from these planned actions, and expects to incur restructuring costs of about EUR4 million (USD5 million). These actions are expected to be implemented by the end of 2012.