WESTPORT, CT, Aug. 6, 2009 — 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…read the rest of the article here.