The KION Group could shut the Linde Material Handling site in Merthyr Tydfil in the UK if consultations with stakeholders for the reorganisation of the company's business activities at the site do not yield a win-win situation.

Linde Material Handling, which is wholly owned by KION, is starting consultations with affected employees and worker representatives which will last for at least 90 days.

The Merthyr Tydfil site employs 203 people in manufacturing, engineering, sales, service and administration.

The reorganisation is part of the company's efforts to further improve the efficiency of its European production network.

"Our goal is to significantly improve our container handling and heavy truck business," says Theodor Maurer, CEO of Linde Material Handling. "In addition, we intend to further increase the long-term competitiveness of our offerings to customers through a revised strategy for the container handling business and the heavy forklift segment of our Linde brand."

KION will provide "as much assistance as possible" to employees seeking alternative work or training if the plant closes. Employees will have the opportunity to apply for vacant positions at other sites and the group will work with employees and their representatives to agree on loyalty and severance packages.

Linde moved to the Merthyr Tydfil site in 2000, taking it over from Korean industrial truck manufacturer Halla Ltd, which had set up the site in 1996. Previously, Linde heavy trucks and container handlers were built 24 km (15 mi.) away in a plant in Blackwood.