Epiroc says it is taking actions to promote efficiency within its Tools & Attachments segment, consolidating its European manufacturing of hydraulic attachment tools to improve competitiveness.

As a result of this move, the manufacturing facility in Essen, Germany, will be closed, Epiroc said.

Epiroc will consolidate the hydraulic attachment tools manufacturing in Europe to other existing production facilities in Kalmar and Fagersta, Sweden, and Dermbach, Germany. The consolidation will strengthen Epiroc’s competitiveness, it said.

Epiroc’s operation in Essen is planned to be closed by the end of 2025, with some 130 employees to be affected.

Helena Hedblom, Epiroc’s President and CEO, said: “We regret that this consolidation will affect our colleagues in Essen. These actions, however, are necessary to safeguard that we remain competitive within hydraulic attachment tools. We will ensure that our customers get the best products and solutions possible also onwards.”

The restructuring cost is estimated at about SEK155 million ($14.3 million) and will be reported in the December quarter of 2023.

Epiroc also has manufacturing of hydraulic attachment tools in the US, India and South Korea.

In an additional activity to increase efficiency and promote sustainable profitability in its Tools & Attachment segment, Epiroc has decided to cease production at its relatively minor rotary pipes and accessories facility in Perth, Western Australia.

Epiroc’s aim is that all the facility’s employees will be offered new jobs in the company.