Manitowoc will move its crawler crane production to Shady Grove, PA.

Manitowoc will move its crawler crane production to Shady Grove, PA.

The Manitowoc Company, which has produced lattice boom crawler cranes at its Manitowoc, Wisconsin, USA, factory since 1925, has announced its intent to relocate its crawler crane manufacturing to Shady Grove, Pennsylvania.

The company said the decision will “optimize its manufacturing footprint, reduce costs and expand margins,” and “this initiative is expected to generate annualized pre-tax cost savings of US$25 to 30 million. This initiative will increase operational efficiency and allow the company to reallocate resources to invest in profitable growth.”

The transition will begin in the third quarter with completion anticipated by the middle of 2017, according to the company. Manitowoc “right sized” its operations in Shady Grove and Manitowoc in March 2016. The number of jobs affected by this announcement has not been revealed.

Commenting on the announcement Barry Pennypacker, president and chief executive officer, said, “After a comprehensive analysis and review of our current manufacturing footprint, coupled with current market conditions, we believe this restructuring initiative will ensure that our business continues to meet and exceed the needs of our customers every day."

Pennypacker continued, “We further recognize that this will have a personal impact on people who have been dedicated to Manitowoc. We thank them for their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process.”

In 2015 Manitowoc began producing some of its crawler crane line in Shady Grove. Shady Grove is a 300 acre (120 hectare) facility with capability in manufacturing a broad range of product lines, including rough terrain cranes, truck cranes, boom trucks, industrial cranes and lattice boom crawler cranes, according to the company.

“Manitowoc has made significant investments in new equipment at the Shady Grove facility to augment its capacity and capability. This transition will optimise utilisation of these assets with sufficient manufacturing capacity to support current and future crawler demand,” the press release said.

The company said it will maintain its crawler crane product engineering and related support functions in the Manitowoc, WI, area and its headquarters in Manitowoc.

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