JLG Closing Three Plants As Part Of “Simplification”
By pdamon26 January 2017
JLG Industries, Inc., an Oshkosh Corp. company and a global manufacturer of aerial work platforms and telehandlers, announced it has submitted plans for closure to the works council in Maasmechelen, Belgium, for its manufacturing and Pre-Delivery Inspection (PDI) facilities and to employee representatives in the UK for its engineering center in Bruntingthorpe. Manufacturing lines at the company’s Orrville, Ohio plant will also be shut down.
“As part of our simplification strategy, we have evaluated our global manufacturing footprint and product offering to ensure our operations and product portfolio continue to remain competitive and meet current and future market demands,” said Frank Nerenhausen, Oshkosh executive vice president and president Access Division. “These planned actions allow us to improve performance to maintain our position as an access equipment leader around the globe.”
To optimize the company’s product portfolio, JLG said it plans to reduce its telehandler product offering in EMEA. The intent is to continue producing a limited range of telehandlers for the region at its Medias, Romania, plant. Discontinued models will continue to be supported by JLG’s aftermarket division for a minimum of 10 years.
As a result of the reduced telehandler line-up, JLG EMEA would require decreased engineering support from its UK-based engineering center in Bruntingthorpe. As such, the intent is to close this location. A small group of employees would be retained in the Bruntingthorpe area or within Europe.
Current PDI activities at Maasmechelen would be streamlined and distributed among remaining JLG facilities and/or outsourced to improve operational performance. A small group of non-manufacturing employees would be retained in the Maasmechelen area.
In addition, the company will close its Orrville, Ohio, based telehandler assembly lines, moving all North American telehandler manufacturing to its Pennsylvania locations. The current JLG telehandler offering in North America will remain unchanged. Engineering services in Orrville will continue normal operations.
These proposed changes may affect up to 525 employees. JLG anticipates that the Orrville and Maasmechelen manufacturing operations would cease by Sept. 30. The Maasmechelen PDI facility is intended to close in 12 to 18 months, while the Bruntingthorpe closure date will be determined once discussions with employee representatives are complete.
Full details of the changes at JLG’s European facilities will be finalized following customary discussions with the works council and employee representatives, the company said.
“These actions, although difficult, are the right ones for our business,” said Nerenhausen. “Simplifying our product portfolio and operations aligns with our long term vision and strategic direction, positioning JLG to deliver an enhanced customer experience and improved return on investment moving forward.”