Elevator Technology, 2015-10-01, 04:00 PM
ThyssenKrupp Elevator Consolidates North American Manufacturing Operations
Refocuses Elevator Operations in Canada Around Service and Sales; Closes Northern Elevator Manufacturing Operations in Toronto
Toronto, Ontario, CANADA, 1 October 2015 - ThyssenKrupp Elevator Americas today announced the phased closure of its Northern Elevator manufacturing operations in Toronto and will consolidate manufacturing at its state-of-the-art U.S. operations in Middleton, Tenn. The Toronto facility will cease manufacturing effective summer 2016.
The strategic change is part of a broad-based plan to ensure the company can meet customer demands while responsibly managing the challenges presented in today’s marketplace. The elevator group remains committed to Canada and will continue to employ more than 1,600 people in Canada while another 2,750 work for other ThyssenKrupp companies in Canada.
“This was not an easy decision and comes after an extensive review of our business,” said Rich Hussey, President and CEO of ThyssenKrupp Elevator Americas. “By consolidating manufacturing operations, we can more efficiently provide high-quality products and customer service while expanding our engineering focus. Our customers asked us for enhanced technical support and field operations assistance in the region; by restructuring we can meet their needs.”
As the largest elevator service provider in Canada, ThyssenKrupp Elevator will maintain its strong technical and field operations support. In addition, the company will grow its field operations, sales and service support as well as further develop its new installation business.
As a result of the action, approximately 165 employees at the Toronto-area facility will be affected. “We regret the impact this decision will have on the employees who have greatly contributed to supplying our customers with high-quality products,” said Hussey. “We hold our employees in the highest regard and we will support them during this transition.”
ThyssenKrupp is proud of its 150-year history in Canada. The Northern Elevator and Middleton manufacturing facilities have a long and successful track record of partnering to serve customers in both the U.S. and Canada. As part of the company’s transition plan, ThyssenKrupp is proactively communicating with customers, suppliers and other business partners to ensure a seamless transition.
ThyssenKrupp Elevator Americas is the largest manufacturer of elevator equipment in the Americas. The company’s manufacturing operations will continue to include manufacturing facilities in Middleton, Tenn. and Porto Alegre, Brazil; an engineering test and qualification tower in Horn Lake, Miss. as well as a parts warehouse in Walnut, Miss. ThyssenKrupp Elevator’s major manufacturing processes in the Americas include metal fabrication, machining, welding, wood working, painting, assembly and testing.
ThyssenKrupp’s Middleton elevator manufacturing operations recently earned LEED® Gold Certification for leadership in energy and environmental design. In addition, the U.S. manufacturing facility is home to a $30 million automated Salvagnini installation, a conveyor-to-assembly system that produces ThyssenKrupp Elevator entrance frames and doors. This massive system punches, forms and cuts a single piece of sheet metal into a finished product.
ThyssenKrupp Elevator brings together the Group’s global activities in passenger transportation systems. With sales of 6.4 billion euros in fiscal 2013/2014 and customers in 150 countries, ThyssenKrupp Elevator reached in a short period the world’s leading elevator companies from scratch in a mere 40 years’ time applying ThyssenKrupp unique engineering capabilities. With more than 50,000 highly skilled employees, the company offers smart products and services designed to meet customers’ individual requirements. Its innovative solutions aim to contribute to the development of smarter cities. The portfolio includes passenger and freight elevators, escalators and moving walks, passenger boarding bridges for airports, stair and platform lifts as well as tailored service solutions. Its 900 locations around the world provide an extensive sales and service network to guarantee closeness to customers.
ThyssenKrupp is a diversified industrial group with traditional strengths in materials and a growing share of capital goods and services businesses. Over 155,000 employees in nearly 80 countries work with passion and technological expertise to develop high-quality products and intelligent industrial processes and services for sustainable progress. Their skills and commitment are the basis of our success. In fiscal year 2013/2014 ThyssenKrupp generated sales of around €41 billion.