Westport-baaed Terex Corporation today announced that it will be consolidating the manufacturing of the equipment made at its Cedar Rapids, Iowa, plant into other Terex facilities in North America. About 170 jobs will be affected.
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 company said. These account for about 50 jobs.
“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 offficer.
“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.”
The Iowa 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, Okla., and other locations in North America to be determined, the company said. All moves should be complete by mid-year 2010.
The Iowa plant has been part of Terex since 1999.
