BOMAG exits Kewanee plant, plans new facility in southern U.S.

BOMAG Americas says it will cease manufacturing operations in Kewanee, Illinois, by the end of 2014 and relocate its business in a yet-to-be-determined location in the southern United States.

BOMAG says its Kewanee-produced products—single drum rollers, asphalt rollers, and a reclaimer/stabilizer—will either be relocated to the new plant or be replaced with “market-accepted products manufactured in BOMAG facilities in Oklahoma, Germany or China.”

In addition, the company will enter into a long-term lease with Terex for the Oklahoma facility, where the company produces asphalt pavers, material transfer vehicles and reclaimers/stabilizers. BOMAG bought these products from Terex earlier this year and announced plans to keep the CMI and Cedarapids brand names.

The planned new facility will include a parts distribution center, training center, product assembly for U.S.-specific machine features and corporate offices.

“The North American market is the largest market in the world and is strategic to our company’s long-term success,” says Joerg Unger, president, BOMAG Worldwide.