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Epiroc to stop production in Essen, Germany

by Kyle Molyneux  |  Wed 15 Nov 2023

Epiroc to stop production in Essen, Germany

Epiroc is taking actions to promote efficiency within its Tools & Attachments segment. Mainly, it will consolidate its European manufacturing of hydraulic attachment tools to improve competitiveness. As a result, the manufacturing in Essen, Germany, will be closed.

Epiroc will consolidate the hydraulic attachment tools manufacturing in Europe to other existing production facilities in Kalmar and Fagersta, Sweden, and Dermbach, Germany. The consolidation will strengthen Epiroc’s competitiveness. Epiroc’s operation in Essen is planned to be closed by the end of 2025. About 130 employees will be affected. 

“We 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,” saiid Helena Hedblom, Epiroc’s President and CEO. “We will ensure that our customers get the best products and solutions possible also onwards.”  

The restructuring cost is estimated at about MSEK 155 and will be reported in the fourth quarter 2023. Epiroc also has manufacturing of hydraulic attachment tools in the United States, India and South Korea. In an additional activity to increase efficiency and promote sustainable profitability, Epiroc has decided to cease production at its relatively minor rotary pipes and accessories facility in Perth, Australia. Epiroc’s aim is that all the facility’s employees will be offered new jobs in the company. This facility also belongs to the Tools & Attachments segment. 

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