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.
Bruks Siwertell has secured a prestigious new order that will see the company deliver three new Siwertell... Read more
Cleveland Cascades Ltd are to supply four of the company’s 1700 sized chutes into Vistino, Russia... Read more
Vistrato Limited, the specialists in online dry bulk training, have produced a comprehensive‘COVID... Read more
Leading global maritime e-learning provider Seagull Maritime and Videotel have jointly launched a new... Read more
Wärtsilä Corporation has released its Half Year Financial ReportHighlights include:Order intake... Read more
Engine designer WinGD (Winterthur Gas & Diesel) has prioritised collaboration and transparency in... Read more
Global learning and operational technology innovator, Ocean Technologies Group, has further bolstered... Read more
On its fleet, SCG offers its personnel a Crew Welfare Zone with free internet within the 12-mile (4G... Read more
In the second quarter of 2020, Piattaforma Logistica Trieste S.r.L. (PLT) ordered an eco-efficient Konecranes... Read more
In the second quarter of 2020, Port of South Louisiana ordered two Konecranes Gottwald Model 6 Portal... Read more