CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 11 MAY 2020 AT 10.00 (EEST)
Cargotec plans to change the ownership structure of the joint venture in China
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.
For further information, please contact:
Antti Kaunonen, President, Kalmar Automation Solutions, antti.kaunonen@kalmarglobal.com
Mikko Puolakka, CFO, Cargotec, mikko.puolakka@cargotec.com
Carina Geber-Teir, SVP Communications, Cargotec, tel. +358 20 777 4000
Further information for investors:
Hanna-Maria Heikkinen, Vice President, Investor Relations, tel +358 40 8262 172
Cargotec (Nasdaq Helsinki: CGCBV) enables smarter cargo flow for a better everyday with its leading cargo handling solutions and services. 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. www.cargotec.com