From left: A hydraulic cutter, magnet and breaker, each attached to an excavator, are some of Epiroc鈥檚 hydraulic attachment tools. (PHOTO: Epiroc)

The company has announced that it will shut down its facility Essen facility in Germany by the end of 2025, saying that the move will 鈥渢o promote efficiency within its Tools & Attachments segment鈥� and help improve its overall competitiveness. 

The company said the closure of the Essen site means that around 鈥�130 employees will be affected鈥�, with all of the workers expected to be made redundant.

Helena Hedblom, Epiroc鈥檚 President and CEO, said: 鈥淲e regret that this consolidation will affect our colleagues in Essen. These actions, however, are necessary to safeguard that we remain competitive within hydraulic attachment tools.

鈥淲e will ensure that our customers get the best products and solutions possible also onwards.鈥�

Over the coming year, the production of excavator tools and other existing product lines in Essen will be transferred to its manufacturing facilities in Kalmar and Fagersta in Sweden, and in Dermbach, Germany.

The restructuring is expected to cost Epiroc around SEK 155,000,000 (US$14.6 million), which will be reported in its 2023 fourth quarter financials.

In addition, the company is also intending to close another of its facilities. While Epiroc also has manufacturing of hydraulic attachment tools in the United States, India and South Korea, it has further 鈥渄ecided to cease production at its relatively minor rotary pipes and accessories facility Perth, Australia鈥�.

The Perth facility also belongs to Epiroc鈥檚 Tools & Attachments division, and its closure also aims to 鈥渢o increase efficiency and promote sustainable profitability鈥�. Epiroc says its aim in this case is that all the facility鈥檚 employees will be offered new jobs with the company.