Cargotec - Company Announcement

Cargotec launches a programme to achieve annual cost savings of approximately EUR 25 million in MacGregor

CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 25 OCTOBER 2016 AT 12:03 PM (EEST)


Cargotec launches a programme to achieve annual cost savings of approximately
EUR 25 million in MacGregor

Cargotec is launching a programme to achieve annual cost savings of
approximately EUR 25 million and beginning statutory cooperation negotiations.
According to preliminary estimates, efficiency improvement actions seek the
reduction of approximately 260 full-time equivalents globally. MacGregor
employed globally 2,355 persons at the end of September 2016.

The objective of the savings is to adapt to the prevailing market situation
faced by MacGregor. In addition, the aim is to ensure long-term competitiveness
on global markets and to continue the improvement of operational efficiency.

MacGregor's market situation is challenging. In the offshore industry, the low
price of oil keeps investments at an unprecedentedly low level, which affects
the demand for offshore load handling solutions. The demand for service has
declined as parts from decommissioned ships are increasingly being used as spare
parts. There is overcapacity on global merchant ship markets, and orders for new
vessels are at an exceptionally low level, which decreases the demand for
MacGregor's products and solutions.

Cost savings are sought through the planned restructuring of operations and
potentially with personnel reductions. It is estimated that the measures affect
especially the operations in Norway, China, Sweden, Finland and Singapore.

The planned savings measures are estimated to result in restructuring costs in
the final quarter of 2016 and in 2017.

"Even in this challenging market situation MacGregor is the leading and the
strongest player in the maritime cargo flow, mooring and load handling markets.
 As a result of these difficult but necessary actions MacGregor will become more
agile. We have strong competence to help our customers operate more
efficiently," says Michel van Roozendaal, President of MacGregor.

More information:
Mikko Puolakka, Executive Vice President, CFO, tel. +358 20 777 4105
Hanna-Maria Heikkinen, Vice President, Investor Relations, tel. +358 20 777 4084


Cargotec (Nasdaq Helsinki: CGCBV) is a leading provider of cargo and load
handling solutions with the goal of becoming the leader in intelligent cargo
handling. Cargotec's business areas Kalmar, Hiab and MacGregor offer products
and services that ensure our customers a continuous, reliable and sustainable
performance. Cargotec's sales in 2015 totalled approximately EUR 3.7 billion and
it employs over 11,000 people. www.cargotec.com

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