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.