Plant manufacturers call for emergency EU bail-out

Plant manufacturers have called for urgent action from the European Commission to head off further job cuts after sales of earthmoving equipment slumped 45 per cent in September compared to a year ago.

Dr Tim Leverton, president of European construction equipment manufacturer association CECE, has set out a four-point plan to bolster the industry through the tough period of falling sales. European-based plant manufacturers contribute €26bn to the EU economy and employ 140,000 workers.

CECE expects lower construction activity coupled with problems financing new building projects and machinery to lead to a strong decrease in plant sales over the coming years. It said the EU needs to take action to safeguard the interests of manufacturers and their customers.

Leverton, group engineering director at JCB, said the plan offered “a vital bridgehead to a more orderly future”.

He wants a 50% flexibility provision in the regulations governing the move to the next stages of engine emission reductions to “keep costs at a more reasonable level with minimal influence on the environment”.

Leverton is also calling on the Commission to give plant manufacturers access to low interest loans and action to keep non-CE marked machines off the European market.

Finally, he wants to show governments evidence that investment in infrastructure provides stimulus, both creating and safeguarding jobs.