“The global economic downturn over the past several months has significantly reduced short-term demand for certain commodities that are produced by our customers in the mining industry,” Bucyrus management told the Business Journal of Milwaukee.

“As a result, demand for equipment also has been reduced.”

The OEM did not indicate how many of its 1600 employees in the Milwaukee area would receive pink slips, but state law dictates that companies must inform the state of any action classified as a mass lay-off, which is defined as cutting at least 25% of the workforce or 25 employees.

In addition to its corporate office, Bucyrus has a large factory in South Milwaukee and a smaller facility in the city’s Bay View neighbourhood. Roughly half the workers are deemed to be in hourly production positions.

“We believe that these reductions will align our resources with the production requirements,” company representatives told the newspaper.

“We are continuously monitoring our markets to ensure our resources remain aligned with our global demand.”

A Bucyrus spokesperson did not return an ILN request for comment or more details, so it is not known if the lay-offs are permanent.

In a recent financial review, the manufacturer reported an increase in first quarter net income from $US41.1 million to $56.9 million and a 17% jump in net sales from $517 million to $605.7 million, both year-on-year. Its underground mining equipment sales spiked 27% in the period thanks to strong longwall system sales.

Bucyrus also reported a significant continued backlog of $2.34 billion as of March 31 – just a slight change from the $2.5 billion reported at the end of the December quarter – but outlined plans for about half of that to convert to revenue in the coming year.

Earlier this month, Bucyrus announced the opening of its new China headquarters in Beijing. Located inside the second east ring of the city, the office allows for a better working environment for Chinese staff as well as increased efficiency.

In May, the OEM celebrated the two-year anniversary of its acquisition of DBT.