Market Report: Compact Plant

Closer to Europe

Bobcat has built a new factory in Prague to enable it to better serve the European market. Alan Guthrie attended the opening.

The official opening of Bobcat’s new Czech plant took place recently during a period of significant change. In July, it was announced that the Korean organisation, Doosan Infracore, would acquire three businesses from Ingersoll-Rand for US$4.9 billion (£2.4 billion), comprising Bobcat compact equipment, utility equipment and attachments. Doosan says the purchase - the largest overseas acquisition in Korea’s history - will integrate well and add compact equipment to its medium and large-scale construction machinery product lines. The deal could be formally concluded this month.

Speaking at the opening in Dobris, south of Prague, Bobcat President and CEO, Richard Pedtke, said that the strength of the Bobcat brand meant that product identity changes would be unlikely. He added that there was little likelihood of the business developing its own hire operation in the future, since hire companies represented a valued customer segment. Indeed, establishing the factory is part of a programme for better serving, and understanding the needs of, customers in Bobcat Europe, Middle East and Africa (EMEA) region. It follows the relocation of Bobcat’s EMEA headquarters to Waterloo in Belgium, and the opening of a parts facility at Puurs, in the same country.

The story behind the new Czech plant goes back to 2001, when Bobcat acquired Superstav, a manufacturer at Dobris of compact loader backhoes. Production was discontinued in 2005 and, that same year, Bobcat started serial production of the 553 skid steer loader for the European market. This represented the first stage of a phased transfer of 553 production from Bismarck, North Dakota, to Dobris, which at that time manufactured backhoes and attachments. The decision was based on the fact that the majority of sales of this loader, subsequently replaced at the beginning of 2007 by the S100 model, are in Europe. In early 2006, production of the 1.3-tonne 319 mini excavator began, specifically developed for European customers, and later that year production of the S130 skid steer loader was transferred to Dobris. The plant has now been substantially redeveloped to make more products for this market, with corresponding advantages in delivery times, transport costs and responding to customers. By the end of the year, the 321 and 323 minis will also be made at the factory, together with the S175 and S185 compact loaders; the S150 and S160 models will enter production in 2008.

Covering an area of more than 20,000m2, the plant undertakes fabrication, welding, painting and assembly of small and mid-size compact loaders, mini excavators of up to 2 tonne, and attachments. The total initial investment, approaching $32m (£15.6m), includes a learning centre adjacent to the plant and an outdoor training area covering 5,000 m2. The former Superstav plant, located half a mile from the new factory, is now the site of a dedicated product development centre.

Bobcat mini tracked loader, skid-steer loader and compact tracked loader ranges cover operating weights from 1137-4421kg and rated operating capacities from 252-1461kg. All have the quick-change Bob-Tach attachment mounting system, allowing the machines to accept more than 60 implements for construction, landscaping, recycling, and general industry tasks. The mini excavator range runs from the 820kg 316 to the 12.5-tonne 444 model, and these are claimed to offer high bucket breakout forces and fast cycle times.

Bobcat intends to have 80% of products marketed in EMEA sourced in Europe by the end of 2008, and reports that, in 2006, revenue in Europe increased by nearly 25%. Scott Nelson, President of Bobcat Europe, says that, once the acquisition by Doosan is finalised, there will be an “aggressive” launch schedule over the next five years, across the company’s product ranges. •

T 020 8723 0161
W www.bobcat.com

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