Doosan to close Belgian factory

Premium Content

02 September 2014

Doosan Infracore has announced it will close its excavator factory and parts distribution facility in Frameries, Belgium with the loss of up to 313 jobs.

The company said that lower than anticipated European demand for excavators since 2010 had been a key factor in the decision. It added that the facility had been accumulating losses since 2008, and that there was no indication of a turnaround in the foreseeable future.

“The company launched many initiatives in order to reduce the costs of Frameries and to protect employment. Despite all these efforts and all the improvements made, Frameries’ manufacturing costs are still too high. This means that Frameries cannot operate being both profitable and competitive,” said a statement from Doosan Infracore Europe.

Plant general manager Guiseppe Pappalardo said, “We have made the maximum effort to find an economically viable solution for maintaining production activity at the Frameries site. For us the only way to continue to trade is to reduce the company’s annual losses, supplying our European customers by fully sourcing from the company’s Korean production facilities”.

The statement added that Doosan Infracore Europe would continue the trading activities.

The decision was reportedly met with surprise from the workers’ council. Local media reports there has been vandalism at the factory overnight following the closure announcement.

Why material recovery is becoming a competitive advantage for demolition contractors
As construction and demolition waste recovery demands increase, so does the need to make the process more efficient
Engineering demolition in a live industrial environment: The Matosinhos Refinery
When established methods are not enough, safety has to drive the solution
Panel announced for ‘Hidden Cost of Heat’ webinar
Experts will discuss how smarter cooling can improve uptime, reduce costs and boost equipment performance