BOMAG Americas Inc.

BOMAG to Relocate Manufacturing Operations from Illinois to Southern U.S.

Driven by a key strategic initiative to expand its leading North American position and support for its customers throughout North America, BOMAG Americas Inc. has announced it will cease manufacturing operations in Kewanee, IL, 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 “best in class” 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," says 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."