Joy Global is to temporarily close its heavy fabrication and welding department at its Milwaukee facility from the end of November, affecting 113 employees. No date has been given for the reopening department with a company spokesperson saying it would depend on demand.
"We have work they’re still doing until late November," Caley Clinton told the Milwaukee Business Journal. "Once that work wraps up, we don’t have any more work scheduled. Reopening will be a matter of when demand picks back up."
Joy Global reported a 31% fall in orders and a 10% fall in sales in its latest quarterly earnings report, blaming a market that is “one of the most challenging seen in decades”, prompting the company to say it was looking at further cost reductions.
"The further step down in commodity prices resulted in projects getting delayed and a lock down on cash from our customers which impacted our service business,” said Ted Doheny, President and CEO. “We are accelerating our facility optimisation plans and taking additional cost reduction actions to align with lower market demand.”
Fellow mining equipment manufacturer and Milwaukee-based business Caterpillar recently announced it was to shed 10 000 jobs between now and 2018 and reduce its manufacturing space by up to 20% in response to lower demand from the mining industry.
Joy Global’s shares closed at US$14.91 on 30 September down from US$46.99 at the beginning of the year.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/01102015/joy-to-shed-jobs-at-milwaukee-factory-2938/
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