Major steps at Tadano Group in Germany

Tadano Group in Germany submitted its restructuring plan under the protective shield proceedings for Tadano Demag and Tadano Faun on 4 January 2021.

The company said it is making good progress with the proceedings, largely attributing the success to a strong co-operation between all those involved, especially the labour representatives. It should be on course for completion by the end of the first quarter, after a vote by creditors.

Progress has been made as per the management’s schedule. The objective is to have completed the reorganisation of both Tadano Faun and Tadano Demag just over a year from now, by the end of the first quarter of 2022.

Key elements of the restructuring plan are a focus on the organisational setup, to improve efficiency in all aspects of the business and to update and refine the product ranges. Administration of the businesses, previously done at Lauf and Zweibrücken in Germany, will all be moved to Zweibrücken. Part of this, plus the work to integrate the two businesses prior to the protective shield proceedings, is the integration of the IT systems, both internally and for customers.

As part of the sustainability element of the restructuring and in response to the impact of the Coronavirus, there will be downsizing and job cuts both at Zweibrücken and Lauf. Total headcount reduction will be by around 25 per cent and it will be in all departments. It will be 392 employees at Zweibrücken and 114 employees at Lauf. That is from totals of 1,558 people working in Zweibrücken and 729 at Lauf.

In terms of manufacturing and production, the two companies were already working to increase efficiency in this area as part of the Tadano and Demag integration process. A system of competence centres will help with standardising production and optimising capacity. Further to the latter, some previously outsourced manufacturing will be brought in-house.

Known as a specialist heavy vehicle maker, Faun made carriers for crane manufacturers, among others, before it became Tadano Faun. The Lauf factory has retained a competency in this area and it will be part of the restructure to take advantage of this. Lauf will also be the focus of crane maintenance, repair, customisation and used cranes, again for both brands. Zweibrücken offers advantages for assembling booms and the superstructure. Carriers will be taken from Lauf for final assembly at Zweibrücken.

Combining the best of the two companies’ product lines means a wider range of products to choose from to more closely meet customer requirements. A modernisation programme for the mobile crane lines will continue and even gain fresh impetus, developed by joining forces and sharing ideas, including developing a strategy of modularisation, standardisation and common components.