Finning Group (UK) has today announced that it is proposing to centralise the group business support services of its CAT dealership and Hewden arms into a single location at Cannock, Staffordshire. It is envisaged that as a result Hewden will be closing its administration offices in Tannochside, near Glasgow and retaining a Hewden focussed operational support team presence in Manchester. Customer facing depots and branches in both Scotland and Manchester will be unaffected, with no impact on services, operational staff or accessibility for Finning and Hewden customers.

The move is designed to achieve better integrated IT, finance and services across the group. It will also bring significant reductions in administration costs in keeping with a recent £12.6m investment in a new IT system and a leaner and more focused business.

Finning Group (UK) Managing Director, Andy Fraser, says "Our investment in a new IT system has automated a number of processes. Similarly, our administration requirement has been reduced by the successful sale of Finning UK’s Materials Handling division and Hewden’s Tools and Hoists businesses as going concerns. This is in keeping with our now long stated strategy of focusing our capital investment on state of the art equipment and services for the heavy duty plant and major construction markets.

"We currently expect that the majority of staff who are happy to relocate will be able to be TUPE transferred to our Cannock offices where the centralisation of business support services will create opportunities for career development. Comprehensive relocation support will be made available to support this. We are, however, entering into consultation for those who do not want to move or whose posts may no longer exist," says Fraser.

Finning will be providing appropriate support, such as relocation and outplacement services, to circa 100 employees in consultation with staff representatives. New posts created in Cannock are expected to total circa 75.

Andy Fraser is anxious to stress that movement of administrative support to Cannock does not mean any reduction in operational staff or services for either Scotland or any other region: "Our depots in these areas are unaffected. Indeed our Aberdeen, Dundee and Elgin Hewden plant depots are all the subject of major refurbishments and upgrades this year supported by an initial investment of around £2m. In Hamilton, Finning Group are also proposing to invest a further £1.4 million in capital expenditure at its CAT branch there, where the number of equipment service bays and retail and office space will all be increased. All of the proposed changes and related refurbishment and construction work are expected to take place over the course of 2008.

We are gaining some real cost efficiencies by having a better integrated business support centre that supports both Hewden and Finning. Overall, the restructuring will provide the correct level of business support for a truly customer solutions focussed organisation with better market information. We do not expect customer or operational disruption during this time of change.. Finning Group (UK) is committed to continuing to grow those UK operations where we have, or intend to build, a leadership position through the provision of best operations, best value pricing, best service and the best equipment in the UK market."