Manitowoc to Relocate Crawler-Crane Manufacture to Shady Grove, PA

Move expected to be complete in 2017 stands to generate annualized pre-tax cost savings of $25 to $30 million

August 9, 2016

The Manitowoc Co. Inc.

The MLC300's VPCcounterweight system automatically positions the crane’s counterweight to maintain a center of gravity closer to the center of rotation, which reduces ground-bearing pressure, and therefore, ground prep.

The Manitowoc Company Inc. (NYSE: MTW) announced its intent to relocate its crawler crane manufacturing operations from Manitowoc, Wis., to Shady Grove, Penn., to optimize its manufacturing footprint, reduce costs and expand margins. This initiative will increase operational efficiency and allow the company to reallocate resources to invest in profitable growth. The transition will begin in the third quarter with completion anticipated by the middle of 2017.

In total, this initiative is expected to generate annualized pre-tax cost savings of $25 million to $30 million.

“After a comprehensive analysis and review of our current manufacturing footprint, coupled with current market conditions, we believe this restructuring initiative will ensure that our business continues to meet and exceed the needs of our customers every day. We further recognize that this will have a personal impact on people who have been dedicated toManitowoc. We thank them for their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process,” said Barry Pennypacker, president and chief executive officer, The Manitowoc Company.

Shady Grove is a 300-acre facility with proven capability in manufacturing a broad range of product lines including its rough terrain cranes, truck cranes, boom trucks, industrial cranes and lattice boom crawler cranes. Since 2015, Shady Grove has been producing crawler cranes with the quality and reliability customers expect. Manitowoc has made significant investments in new equipment at the Shady Grove facility to augment its capacity and capability. This transition will optimize utilization of these assets with sufficient manufacturing capacity to support current and future crawler demand.

Manitowoc's crawler business intends to maintain its product engineering and related support functions in the Manitowoc, Wis., area.

The Manitowoc Company Inc. will maintain its headquarters in Manitowoc, Wis.