Kalmar Completes the Cooperation Negotiations in Lidhult, Sweden

Kalmar, part of Cargotec, has completed the employee cooperation negotiations with the labor unions in Lidhult, Sweden. As a result of the negotiations, Kalmar has decided to transfer the production of forklift trucks from Sweden to Poland, invest in new, state of the art premises in Sweden and transform the operations in Southern Sweden into a Business, Innovation and Technology Center. The change will lead to a permanent reduction of 160 employees and gradual closing of the operations in Lidhult.

The measures aim to improve Kalmar's operational efficiency and ensure long term competitiveness in the global markets. The production of forklift trucks will be transferred to Kalmar's assembly operations in Stargard, Poland, starting from the fourth quarter of 2016. The transfer is expected to be finalized by the end of 2017. 

The restructuring costs associated with the transfer are estimated to amount to approximately EUR 18 million, out of which EUR 16 million will be booked in Cargotec's results in 2016 and EUR 2 million in 2017. Approximately EUR 13 million of the restructuring costs are cash effective. The total benefits of the activities are expected to amount to approximately EUR 13 million annually from 2018 and onwards.

"The decisions are of course sad for the people in Lidhult. However, these actions are needed to sustain our global leadership position on the global markets. Through the change, we will gain synergies and make our production setup more cost competitive, enabling us to focus on our technological competence development in digital business," says Dan Pettersson, Senior Vice President, Mobile Equipment, Kalmar.

"Kalmar's new Business, Innovation and Technology Center in Ljungby will create new business and job opportunities in Southern Sweden. According to our estimates, we will have around 200 people employed at the new site in the future. In Stargard, Poland, we are expanding our operations to facilitate the production of forklift trucks. This will create about 200 new jobs in the region," he concludes.

Kalmar employs currently 350 people in Lidhult and Ljungby, Sweden, and approximately 320 people in Poland.