Rock to Road

News
Major changes coming for BOMAG


August 29, 2013
By Rock to Road

August 29, 2013, Kewanee, Ill. –
BOMAG
Americas, Inc. today announced it will cease manufacturing operations in
Kewanee, Ill. by the end of 2014 and relocate its business to a yet-to-be-determined
location in the southern United States.

August 29, 2013, Kewanee, Ill. –
BOMAG
Americas, Inc. today announced it will cease manufacturing operations in
Kewanee, Ill. by the end of 2014 and relocate its business to a yet-to-be-determined
location in the southern United States. The products (single drum rollers, asphalt rollers, MPH364
reclaimer/stabilizer) which are currently manufactured in Kewanee will either
be relocated and/or replaced with market accepted products manufactured in
other existing BOMAG facilities located in Oklahoma, Germany or China.The company is making this move in order to
maximize its manufacturing efficiencies, maintain competitive product costs and
most importantly better support our customers.

As part of its corporate strategy
to provide strong product support, the company will build a new facility to
accommodate a parts distribution center, training facility for sales and
service, assembly to accommodate special features for the North American market
and a corporate office complex. In conjunction
with this move the company is also announcing its intent to enter into a long
term lease with a facility based in Oklahoma that will focus on providing the
engineering, technical support and manufacturing of asphalt pavers, material
transfer vehicles and reclaimer/stabilizers specifically designed for North and
South America as well as other key export markets. 

“In order to improve our
leading position in the marketplace we felt it was imperative to consolidate
our manufacturing operations in order to leverage economies of scale and
maximize our competitive position,” stated Joerg Unger, president of BOMAG
Worldwide.“Our intent is to strengthen our North American
organization with the objective of being closer to our customers in service
support, product development and product specific engineering utilizing all
potential synergies within the BOMAG Worldwide organization. The North American
market is the largest market in the world and is strategic to our company’s
long-term success. The announcement of such an investment
is a highlight of our commitment in this development.”

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