Cargotec to change China JV structure
(Posted on 12/05/20)
Cargotec and Jiangsu Rainbow Heavy Industries Co., Ltd. (RHI) plan together to change the ownership structure of their joint venture Rainbow-Cargotec Industries Co., Ltd (RCI) in China. The joint venture was established in 2012, and since then, RCI has successfully manufactured port and offshore cranes for Kalmar and MacGregor business areas at the factory in Taicang, China.
The companies have entered into an agreement where Cargotec will sell its 49% ownership in RCI to the joint venture partner, and simultaneously acquire certain operations and assets from RHI. According to the preliminary estimate, Cargotec will book a cost affecting comparability totalling EUR 35 million in its second quarter 2020 result as a consequence of the transaction.
The change aims to simplify Cargotec’s global supply chain operations. Simplification is needed mainly because the number of complex automation projects has been growing in the past couple of years. The arrangement will also support the asset light balance sheet structure.
After the transaction is completed, Kalmar and MacGregor will continue selling their offering to customers globally, partnering together with RHI and RCI. As part of the agreement, about 160 RCI employees are estimated to move over to Kalmar once the change in ownership structure has been completed.
Cargotec's business areas Kalmar, Hiab and MacGregor are pioneers in their fields. Through their unique position in ports, at sea and on roads, they optimise global cargo flows and create sustainable customer value. Cargotec's sales in 2019 totalled approximately EUR 3.7 billion and it employs around 12,500 people.
China’s Chengxi Shipyard has handed over the first of twin self-unloading transshipment newbuilds... Read more
Global Drone Inspection (GDI), the new subsidiary company of robotic inspection specialists RIMS BV,... Read more
Wärtsilä Voyage has introduced Wärtsilä SmartMove Suite to the global shipping market... Read more
Maritec Pte Ltd, the fuel and oil testing services company acquired by leading certification company... Read more
The U.S. Coast Guard (USCG) have issued its type approval for Alfa Laval PureBallast 2. Most owners... Read more
In the midst of digital technology continuously changing the landscape of the international shipping... Read more
Rotterdam-based company DisinfectYour.com has launched a new service to help vessel owners and crew... Read more
Current Direct, a new research and innovation project funded by the European Commission’s Horizon... Read more
Data analytics innovator ioCurrents will offer KVH Watch connectivity as part of their vessel maintenance... Read more
Thordon Bearings has added to the growing concern over proposed changes to Vessel Incidental Discharge... Read more