Terex Corp. last week 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,” said Tom Riordan, Terex president and chief operating officer. “As a result, manufacturing capacity across the company is greater than needed to meet foreseeable market demand. 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 Terex employees are affected by this decision. For union-represented employees all terms of labor contracts will be honored, and for other employees, 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, Mich.; Oklahoma City; 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.
Headquartered in Westport, Conn., Terex Corp. 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.