Cargotec's MacGregor will cut jobs

MacGregor, part of Cargotec, has announced plans to reduce its workforce at the MacGregor Uetersen site in Germany.

The move is part of a restructure of the operations in response to the weak market demand.

A company statement says the market situation has deteriorated due to the low oil price and low number of new merchant ship orders.

Ensuring competitiveness in the long term over the current market cycle requires constant development of MacGregor's operations globally, the statement adds.

MacGregor is planning to start capacity adjustment measures which are estimated to have an impact on approximately 100 employees at

MacGregor Hatlapa GmbH & Co. KG in Uetersen by the end of 2015. The target is to reach annual savings of EUR7 million (USD7.85 million) in 2016.

MacGregor Hatlapa will continue to deliver winches, steering gear and compressors and serve its customers with the same commitment and customer focus as it has been recognised for over the years, according to the company.

The redundancies are estimated to generate restructuring costs of EUR5 million (USD5.6 million) in 2015.