WESTPORT, Conn.--(BUSINESS WIRE)--Terex Corporation today announced that it will be consolidating the
manufacturing of the equipment made at its Terex Cedarapids plant in
Cedar Rapids, Iowa, into other Terex facilities in North America.
Engineering, sales and service functions for materials processing
equipment now made at the plant will be retained at the facility for the
foreseeable future.
“The worldwide recession has greatly reduced construction equipment
orders. As a result, manufacturing capacity across the company is
greater than needed to meet foreseeable market demand,” said Tom
Riordan, Terex President and Chief Operating Officer. “The decision to
move manufacturing from Cedar Rapids was not an easy one because we know
this action affects team members and their families. Over the last
several months, the plant has instituted temporary shutdowns, reduced
positions and placed team members on indefinite layoff. These actions
were not sufficient given market conditions and our need to ensure that
manufacturing operations are as efficient as possible.”
Approximately 170 team members are affected by this decision. For
union-represented team members, all terms of labor contracts will be
honored, and for other team members, severance pay and outplacement
assistance will be provided. Approximately 50 positions will remain in
Cedar Rapids.
The Terex Cedarapids plant makes a variety of mobile crushing and
screening equipment, as well as asphalt pavers. Manufacturing operations
will be moved to existing Terex facilities in Durand, MI; Oklahoma City,
OK; and other locations in North America to be determined. All moves
should be complete by mid-year 2010.
The Cedarapids team has been part of Terex since 1999. The company was
founded as “Iowa Manufacturing Company of Cedar Rapids” in 1923 to make
crushing, screening and conveyance machinery to produce aggregate for
the burgeoning road building industry. The company began making hot
asphalt plants in 1929 and asphalt pavers in 1956. It was re-named
Cedarapids in 1985.
Terex Corporation is a diversified global manufacturer with 2008 net
sales of $9.9 billion. Terex operates in four business segments: Terex
Aerial Work Platforms, Terex Construction, Terex Cranes, and Terex
Materials Processing & Mining. Terex manufactures a broad range of
equipment for use in various industries, including the construction,
infrastructure, quarrying, surface mining, shipping, transportation,
refining and utility industries. Terex offers a complete line of
financial products and services to assist in the acquisition of Terex
equipment through Terex Financial Services. Terex uses its website to
make information available to its investors and the market at www.terex.com.