27.11.2008

Hiab merges UK operations

Cargotec is merging it's Hiab sales and service operations in the UK.

Moffett truck mounted forklift sales and service functions, currently performed by Moffett Ltd will be integrated with the Hiab sales and service organisation from January first.

The sales and service functions of both product lines will report to Ismo Leppanen, managing director of Hiab in the UK.

Ellesmere, Shropshire based Hiab UK already handles the Loglift forestry cranes, Jonsered recycling cranes and Multilift demountable truck bodies, as well as Hiab loader cranes.

The Moffett office and workshops in Coventry will be retained and the service activities from there will be extended.

"This development is part of the global "On the Move" programme which will create more efficient country and regional organisations around the world. Ultimately the UK will have one trading company, Cargotec Ltd with centralised support functions and better and more integrated sales organisations for Hiab, Kalmar and McGregor products" said Leppanen.
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Ismo Leppanen

"Tough market conditions and reduction in market demand has prompted us to act swiftly and improve the economics of our distribution and service network in the UK. We have traditionally worked as highly independent teams. By combining and focusing on the common customer base, we are creating an organisation which can offer our customers more complete solutions and technical support. "


Vertikal Comment

This move is entirely logical from both a cost basis, avoiding the duplications in all the ‘back room’ activities as well as management, and all the costs associated with running a separate company.

The merger, if completed well, will help add to the market coverage for both Moffett and Hiab loader cranes. The merger of Kalmar and McGregor in the UK would make sense as they do share some overlap in customers and involve a similarity in distribution methods.

Including Hiab with the two makes less sense and and is far from logical, unless you simply look at it from a real estate basis. Such a merger will be more of a challenge with very little synergy and very little direct customer benefit.