Cargotec has established Sinotruk (Shandong) Hiab Equipment Company a joint venture with the China National Heavy Duty Truck Company (CNHTC). The Finnish manufacturer’s stake in the JV is 50 percent with Cargotec’s estimated equity investment in the joint venture during the first operational year approximately €10m. Over several years the firm anticipates the total investment costs of the joint venture would be around €100m.
CNHTC is a state owned Chinese manufacturer of heavy duty trucks and Sinotruk’s parent company. Cargotec said that the JV would use CNHTC’s network of dealers and service stations across the country for the distribution, sales and services of Hiab’s cranes and hooklifts.
The joint venture also intends to develop CNHTC’s existing truck crane offering and production base for the Chinese market. Cargotec said that it believes that by combining both companies’ technical know-how it expects the JV to become a significant player in the truck crane business in the near future, particularly in China.
Cargotec added that it was expecting double-digit growth in the total market for load handling equipment in China over the next years, driven by robust demand for new equipment and replacements and for greater efficiency in the infrastructure, industrial and property sectors. Cargotec estimates the existing market for truck-mounted cranes in China to be around 10,000 units, dominated by local manufacturers. Around 35,000 units were sold in 2011.
The firm has had a presence in the Asia-Pacific region for more than 30 years, with its own representation and operations for Load Handling business since 1973. Today, Cargotec has five factories in the Asia-Pacific region.
Cargotec has had a joint venture in China for the dockside and marine side of its business since 2012 with the Jiangsu Rainbow Heavy Industries Company. The firm has manufactured knucklebooms in China at their own plant for ten years.
Source: Cranes World