Wacker Neuson closes Welsh plant

Parent company Wacker Neuson said it would transfer production of its wheel dumpers from the Welsh town of Tredegar to its plant in Linz, Austria and close the company’s Welsh arm soon thereafter.Wacker Neuson said the downturn in global economic growth had escalated within an unusually short space of time into a global economic crisis during the third quarter. The company said this had caused a sustained downward movement in customer order patterns in the compact equipment segment – and the market for wheel dumpers, a product sold predominantly in Great Britain, Spain and Switzerland, has felt the worst effects of the downturn. In the first nine months of 2008, this product group saw orders fall 48% on the same period last year, with figures for the overall group compact equipment business segment down approximately 18% at September 30, 2008. Wacker Neuson said the closure of its Welsh plant was expected to greatly relieve pressure on the company’s cost structure. Furthermore, it said the transfer of production activities and their integration in the existing compact equipment plant in Linz promised substantial savings for the company. The company expects the prevailing global economic conditions to continue to negatively impact investment decisions and customer order patterns throughout the rest of the calendar year.

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