Terex looks to 5,000 units

Production of the Terex Fermec backhoe loader could reach 5,000 units a year at the new factory in Coventry, said chairman and chief executive Ronald DeFeo.

"In 2001 we sold 250 backhoes in the US; last year we did 1,000: our products are good, our prices are even better, we are taking market share from others," he added.

In addition, he expects to realise £12m from the sale of the vacated properties in Manchester and Warwick.

Flexible production facilities in the new factory will allow synergy between the products and enable the company to expand its portfolio. Production at the 30,300m2 factory (which also assembles site dumpers and agricultural telehandlers) could be tripled.

DeFeo added that the company was still looking to fill gaps in its product line but said there was not enough cash in the plant market for a second full line producer. "We believe in niche marketing."

While saying that his company was still interested in skid steers and scrapers, DeFeo discounted adding dozers and 20t-23t excavators to the range unless "it is by accident".

He confirmed that all tower cranes would carry the Terex branding but dismissed a name and colour change at Genie or the setting up of a European plant to assemble access equipment. As to the future, he expected 2004 to be better than this year and said all Terex companies have engineers working on the next generation of products.

When questioned about the Hawk Terex rental agreement, DeFeo said: "We don't want to own our own rental fleet and compete with our customers, but we will support customers who use our products."

Revenue in the first quarter rose 59% to £564m reflecting earnings at Genie and Demag.