Bomag Americas Inc. 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. Products currently manufactured in Kewanee (single drum rollers, asphalt rollers, MPH364 reclaimer/stabilizer) will either be relocated and/or replaced with market-accepted products manufactured in existing Bomag facilities in Oklahoma, Germany or China.
The company says it is making this move "in order to maximize its manufacturing efficiencies, maintain competitive product costs and most importantly better support our customers."
The company plans to build a facility to accommodate a parts distribution, training for sales and service, assembly accommodating features unique to the North American market and corporate offices.
The company is also announcing intent to enter into a long-term lease with a facility based in Oklahoma that will focus on providing 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.
“We felt it was imperative to consolidate our manufacturing operations in order to leverage economies of scale and maximize our competitive position,” states 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.”