Bomag To Relocate To Southern U.S.
Bomag Americas has announced that it will cease manufacturing operations in Kewanee, Ill., by the end of the year and relocate its business to a yet-to-be-determined location in the southern United States.
The company’s roadbuilding products (single drum rollers, asphalt rollers, MPH364 reclaimer/stabilizer) currently manufactured in Kewanee will either be relocated and/or replaced with what the company called “market accepted products” manufactured in other Bomag facilities in Oklahoma, Germany or China. Bomag said it is making this move in order to maximize its manufacturing efficiencies, maintain competitive product costs and better support its customers.
“In order to improve our leading position in the marketplace we felt it was imperative to consolidate our manufacturing operations in order to leverage economies of scale and maximize our competitive position,” stated Joerg Unger, president of Bomag Worldwide. “Our intent is to strengthen our North American organization with the objective of being closer to our customers in service support, product development and product specific engineering utilizing all potential synergies within the Bomag Worldwide organization.
“The North American market is the largest market in the world and is strategic to our company’s long-term success. The announcement of such an investment is a highlight of our commitment in this development.”
The company also said it will build a new facility to accommodate a parts distribution center, training facility for sales and service, assembly to accommodate special features for the North American market and a corporate office complex. In conjunction with this move, Bomag announced its intent to enter into a long-term lease with a facility based in Oklahoma that will focus on providing the engineering, technical support and manufacturing of asphalt pavers, material transfer vehicles and reclaimer/stabilizers specifically designed for North and South America as well as other export markets.