Closure of the Linde heavy truck production plant in Merthyr Tydfil, Wales is on the cards
The Kion Group (Linde, Still, OM Still, Fenwick, Baoli and Voltas lift truck brands) has announced it will enter into consultations “regarding a potential reorganisation of its business activities in Merthyr Tydfil (Wales, UK), including a potential closure of the site”.
Merthyr Tydfil currently employs 203 people in manufacturing, sales, marketing and administration for Linde’s heavy truck line including sideloaders, forklifts and container handlers. Consultation will last for 90 days after which Kion will make a final decision about Merthyr Tydfil.
The news has come as a shock to the community in MerthyrTydfil as Kion has invested heavily in the plant. In 2008 it invested £16.5M in a second “giraffe house” at the site as part of a plan to double its capacity for reach stackers and tall ECH mast trucks.
Kion Group’s CEO Gordon Riske was quoted by the BBC: “Despite all possible efforts, including a sustained period of restructuring since 2007, the site has never reached profitability in the face of strong macro-economic headwinds. With much regret, the Kion Board has decided to enter into consultation about the potential closure of the site in order to ensure the future competitiveness and long-term sustainability of the group.”
Kion has emphasised that it remains committed to the heavy truck market on a global level. It has not stated where production will be based in the future, but its facility in Xiamen, China is one possibility.
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