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Three-year plan to shake-up company.Compaction equipment manufacturer Bomag is investing in a rolling development programme that promises to slash manufacturing costs and development time for new mode

The German firm is in the middle of a three-year reorganisation plan and has so far spent DM 2 million (£806,000) upgrading production and parts supply systems.Top management has also been shaken up and the company is restructuring itself with the introduction of profit centres at every stage from production to sales and marketing.According to company president Lothar Wahl: 'To stay competitive, we had to have high productivity.'Germany has high labour costs. But Mr Wahl says that because Bomag has an efficient production system, these costs account for only about 6 per cent of the price of a machine. CONSTRUCTION NEWS

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