Terex just announced that they have sold their demag brand to tadano. Not a bad move, demag has a larger size range than the tadano all terrains, kind of fits in comfortably with tadano's rt's lineup, and tadano has been trying to grow. Slid into the article is the bombshell for here in the U.S. They are exiting all lines of mobile cranes here. Just a year or two ago they closed their waverly Iowa plant, where they had built all the mobile truck cranes and rt's, and moved the operations from there to Oklahoma City, a "consolidation" move that had to cost millions. And now they are just shuttering it. No hydraulic truck cranes, no large boom trucks/ crossover's, no rt's. Sales #'s wise they had to be in the top three in the us. It's been them and link belt and grove for a lot of years. I bet there's a lot of terex sales reps/ dealers that are scrambling today. Anyways, here's the press release: The Demag® Mobile Cranes business has been part of our Company for almost two decades and produces world class products,” said John L. Garrison, Terex Chairman and Chief Executive Officer. “The dedicated Demag® Mobile Cranes team members have made significant contributions to Terex and to the crane industry. The sale is based on strong industrial logic, as the Demag® Mobile Cranes business will become part of a global crane company with complementary products and capabilities. We are pleased to have entered into this agreement with Tadano, a strategic buyer who values the Demag® Mobile Cranes brand, technology, distribution network and team members.” Commenting on the rationale of the deal, Koichi Tadano, Tadano Ltd. Representative Director, President and Chief Executive Officer said: “This is a strategic acquisition that offers Tadano considerable scope for growth. The addition of the well-respected Demag® brand of all terrain cranes and large crawler cranes range extends our product lines and options for customers. The addition of the Demag® branded mobile crane product lines will enhance our global position in this segment. We believe that the Zweibrucken facilities and its global team members, as well as the current distribution partners, are valuable to the future success of the business.” Mr. Garrison added, “In addition to selling the Demag® Mobile Cranes business, Terex will exit the North American mobile crane product lines manufactured in our Oklahoma City facility. These changes will simplify our Oklahoma City operation, which will continue to produce telehandlers and re-manufactured units for our Aerial Work Platforms segment and various products for our Materials Processing segment.” Mr. Garrison continued, “Although we are exiting the OKC-based mobile cranes products, we will continue to sell parts, and offer service and support to our customers.” Terex will continue to manufacture Terex Utilities products at its Watertown, South Dakota facilities. Terex will also continue to manufacture Terex® Rough Terrain Cranes for the global market in Crespellano, Italy, Terex® tower cranes in Fontanafredda, Italy, and Terex® pick and carry cranes in Brisbane, Australia. “These are strong businesses that will continue to be an important part of Terex,” noted Garrison. “During these transitions, our global team is committed to providing exceptional service to all of our global customers, including those affected by these changes.” Moelis & Company LLC acted as financial advisor to Terex on this transaction. Bryan Cave Leighton Paisner LLP acted as legal counsel to Terex on this transaction.
You knew it was coming when they dropped the Terex name and went back to the legacy name a few years ago
I figured the Demag rename was just to make it easier to sell the demag side off. Not that they would close all their US truck and rt crane production. I don't understand all the $ they invested in 2016 moving all the production from waverly to oklahoma city if they were just going to close it. Sounds like they are going to keep making the RT's in italy and some other offshore stuff, but those guys better not be planning on retirement from there in 5 years. I'd be job shopping already. Here's a article from 2016 when they moved to OKC. To "make it easier access to raw materials and the port of houston". "Investing in the future" my ***. It was probably just a big write down of excess production space to get a jump in their stock price for the exec's golden parachutes. This is from early 2016, transfer was to be completed by 2017: Terex has closed the production of its rough terrain cranes, truck cranes and boom trucks in Waverly Iowa, and moved it to its Oklahoma City facility. The production in Oklahoma City of these lines is expected to commence in September. Dean Barley, Terex Cranes vice president and general manager, said: “The transfer of our Waverly product lines to our Oklahoma City location is consistent with our continuing strategy to win in the marketplace by optimizing our manufacturing footprint, investing in the future and aligning our costs with market demands.” The Terex campus in Oklahoma City sits on roughly 100 acres (40.5 hectares) and has approximately 65,032m2 under roof. Currently crawler cranes are produced at the facility, so company officials plan for a smooth integration of the Waverly product lines. The Oklahoma campus produces five models of the Terex HC Series crawler cranes, offering 80 to 285 USt (72 to 258t) lift capacities. Joining these crane models in September will be the three product families previously produced in Waverly: 16 rough terrain crane models with capacities from 30 to 130 USt (27.3 to 118t); 11 models of boom trucks with lift capacities ranging from 10 to 80 USt (9 to 72.5t); and 4 telescopic truck cranes offering 40 to 80 USt (36.3 to 76.2t) capacities. Terex has recently made multi-million dollar investments in upgrades at the Terex campus in Oklahoma City, so it is ready to handle the additional manufacturing capacity required by the integration of the three product lines previously manufactured in Waverly. “The centrally located Oklahoma City campus is ideal for transportation of cranes and raw materials, and for shipping finished goods. It is also within driving distance of the Port of Houston for improved access to import and export,” the company said.
Next town over has a Terex plant, makes gravel screens & crushers. I can see that would be another division to go on the chopping block. Ed
Terex is probably the worst company for buying, pumping and dumping product lines. The Demag crane division probably missed sales projection by half a percent for three years and Terex passed them on. Tadano has seemed to be progressive company for the last twenty years and has a good chance of making the Demag line stronger. Was there any word whether Tadano would purchase any of the property assets in this country?
Tadano just bought the german production facility. Terex is keeping the oklahoma facility, but will cease crane production, and only keep building their utility truck line and the genie manlifts that they build there. I talked to a dealer today that handles link belt, he said he knows of some unmounted 2019 terex boom trucks that just got sold for a good price not that long ago- they were pushing stuff to the dealers. Even while they were planning on shutting down. Now the dealer is stuck with a no longer made rig- I'm guessing a $100,000 hit on price on the new one- IF you can find a buyer for something they have ceased production on.
I think that's all typical for Terex.
One more reason to stay with a Grove mobile crane .
I'd like to think that they will be around a long time, but they are a publicly traded company, and a year ago they were worth $40 a share, they were as low as $13 a share this january. They are paying their CEO $5 million a year. He's a retread from Danhauer, and Stanley group who specializes in "lean" manufacturing. Unfortunately the "lean" concept works in high production environments. It's not like grove and manitowoc are churning out thousands of crane's a year. He's not a crane guy, he saw his first crane up close in 2015 when they hired him from Garner denver, where he had only been a couple years. During his time at danhauer and stanley, that company specialized in getting rid of their local manufacturing and shipping it to china. Great resume for a investor, not so much if you are interested in quality of products. Just a little FYI on their stock rates. In november of 2017, they were worth around $10 a share. They did a 4 for one reverse split that month, making them end up with fewer shares, each worth $40/ share. So from november 2017 until today, just in a year and a couple months, they've dropped from $40 a share to around $14. And they are paying $5mil a year for leadership like that. They quit building crawlers up in wisconsin, and moved it all to pennsylvania, the grove plant- I'm sure to make the company more "lean", all under one roof. Unfortunately those guys who built crawlers didn't go along. So now you have to have all new workers and supervisors, who know nothing about building crawlers in penn. That's nice for the boss because he doesn't know anything about cranes either, let alone crawlers, he can then lead them into the future. Unfortunately with the stock market having generally gone the other direction in the last year, the losses at manitowoc don't bode well for its future either.
Working utility trucks never did care for the Terex branded machines. Awkward and hard to service, made ALTEC look great.
Is Terex still building utility trucks? ON Fri., I saw two Terex bucket trucks on the Interstate highway here in north Texas. Both looked brand new and had temp tags on them for delivery. I thought Terex had quit the utility truck business also.
They are still building utility trucks.
Ok, thanks. I know they have been dumping a lot of their lines of equipment the last few years.
Well that didn't take long. Tadano is now going to write off some of the debt incurred when buying the demag brand. From how the article reads, this is similar to a chapter 11. Knowing germany, there are probably a lot of protections built into it for the facilities and the jobs. But, no more than I know of germany debt law- this could also be a way to get rid of the facilities and jobs in germany, that they had to take on and maybe don't want. https://vertikal.net/en/news/story/36319/tadano-seeks-formal-restructuring In other news of the former terex. Custom truck one source, which has mounted trucks for years in kansas city, is now manufacturing boom trucks and the truck crane line, based on the old terex drawings/ engineering. Which they purchased from terex. I don't know if they bought the RT drawings and have any plans for those or not. I imagine they will see what sales will be like. I wouldn't want to buy one, in just worrying if they will be around in 5 years, or discontinue it because they don't make $$$ on them. But if they are cheaper than the competition, there's probably a market for them.
So both Demag and Faun are the latest companies ruined by Terex and then dumped for someone else to try to pick up what is left of the pieces. The debt procedure sounds like Tadano's management team is starting the financial build back process early and hopefully successfully. It sounds like there are requirements for a sound financial plan with enough liquidity to have a chance to succeed before the processes can even begin. A government process that protects everyone? Who would have thought?
Sadly like Allis and other companies Terex did as usual, the management sucked the company dry to sell to a competitor and the competitor finds they bought a pig in a poke, the next step is salvage as can where most of the absorbed names die off leaving a cleaner slate but the damage is already done.