Konecranes will close its Ettlingen plant in Germany next year.

About 85 workers will be affected when Konecranes shuts its crane plant in Ettlingen, Germany, next year.

Company spokesman Mikael Wegmüller tells Forkliftaction.com News that the decision was based on the "production volumes and activities" in the 24,000sqm (258,334sqft) facility.

"The annual production of [the plant] represents 15% of all Konecranes' industrial cranes," Wegmüller says.

The closure, expected to save EUR100 million (USD147.3 million) in 2010, impacts employees in crane production and assembly, component production and plant administration.

Whether all the affected workers will lose their jobs is uncertain, Wegmüller says.

"This is subject to [the] outcome of the negotiations with the union. There might be some jobs which will be relocated [to] elsewhere in [the] Konecranes organisation," he explains.

The plant is scheduled for closure by 31 March 2010 and is a part of Konecranes' previously announced plan to restructure the organisation and cut costs as demand for its products decline.

Restructuring costs are estimated to be between EUR15 million and EUR20 million (USD22.1 million - USD29.5 million).

Manufacturing at the company's other German plants in Künzelsau and Liebengrün will continue.

Wegmüller says decisions on any further restructuring will be based on the development of the group's strategy and business activities in the crane market.

"We're actively re-evaluating our plans based on actual and forecasted business development and market demand," he says.

Group sales for Konecranes totaled EUR2.103 billion (USD3.097 billion) in 2008. The group employs 9,700 people in 485 locations in 43 countries.