In Nanjing, the manufacturing will benefit from larger-scale production, sourcing, and logistics infrastructure, which will increase efficiency. The Yokohama production facility, with approximately 50 employees, will be closed by mid-2023.
“We continuously strive to increase operational excellence, and this move will improve our long-term competitiveness and agility,” said Helena Hedblom, Epiroc’s President and CEO. “Our facility in Nanjing provides clear benefits with its significant infrastructure for production, sourcing, and logistics. We are saddened that this will affect some of our colleagues in Japan.”
The production and development that will be relocated is part of Epiroc’s PowerROC range of equipment used for drill and blast applications in construction, such as the PowerROC T25 surface drill rig.
The net effect on operating profit from the sale of the property and the restructuring cost will be positive with approximately SEK 250 million. It will be reported in 2Q22.
