BOMAG, Kewanee, Ill., plans to relocate its business to a yet unnamed location in the Southern U.S. In the announcement made on Aug. 28, the company also stated that they will cease manufacturing operations in Kewanee by the end of 2014.
Products currently manufactured in Kewanee, which include single drum rollers, asphalt rollers and the MPH364 reclaimer/stabilizer, “will either be relocated and/or replaced with market-accepted products manufactured in other existing BOMAG facilities located in Oklahoma, Germany or China,” the release stated.
The company says it will build a new facility to accommodate a parts distribution center, a sales and service training facility, assembly to accommodate special features for the North American market and a corporate office complex. In addition, the company says it also intends 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,” Unger said.
BOMAG has 2,200 employees and a global dealer network of more than 500 dealers. A broad range of product segments consisting of light equipment, asphalt pavers, cold milling planers, reclaimer/stabilizers and soil, asphalt and landfill compaction resulted in BOMAG sales revenue of $755 million in 2012.