February 5 - Konecranes intends to initiate actions aimed at annual cost savings of EUR25 million (USD27.9 million) by the end of 2017.
Approximately half of the cost savings are expected to be realised by the end of 2016, said Konecranes.
To reduce fixed costs and improve operational efficiency, Konecranes says it is planning to pursue: an evaluation of its business model in certain operating countries; closures at manufacturing units and optimisation of its supply chain; streamlining of its product portfolio and resources; and consolidation of its regional functions.
To reach the targeted cost saving of EUR25 million (USD27.9 million), Konecranes expects to incur restructuring costs of approximately EUR20 million (USD22.3 million) by the end of 2017.
In the market outlook issued in its 2015 financial statements bulletin, Konecranes stated that customers are cautious about investing as economic growth has slowed across the world; while companies operating in emerging and commodity markets are particularly under pressure to save costs.
However, Konecranes says that it still believes in its growth opportunities in specific product segments and geographic areas.
The manufacturer has expressed confidence that its merger with Terex Corporation will still go ahead, despite Terex receiving an acquisition proposal from Zoomlion Heavy Industry Science and Technology to override the existing deal.
"While we are proceeding with the planning of the merger with Terex, we are actively seeking opportunities to improve our operational efficiency in a marketplace where several of our end-markets are facing macro-related headwinds," said Konecranes president and ceo Panu Routila.
"The intended actions are necessary and independent of the announced merger with Terex. The execution of these actions will strengthen the foundation of our business in the years ahead."