Cargotec and Chinese partner shuffle deck24 July 2020
Cargotec and China-based Jiangsu Rainbow Heavy Industries (RHI) plan to change to ownership structure of their joint venture Rainbow-Cargotec Industries (RCI) in China.
The joint venture was established in 2012; since then, RCI has manufactured port and offshore cranes for the Kalmar and MacGregor business divisions, at the factory in Taicang.
The companies have now entered into an agreement through which Cargotec will sell its 49% ownership in RCI to the joint venture partner, and simultaneously acquire certain operations and assets from RHI. According to preliminary estimates, Cargotec will book a cost affecting comparability totalling €35m in its second quarter 2020 as a result of the transaction, said Cargotec.
The move is intended to simplify Cargotec’s global supply chain operations, which is required due to the increased number of complex automation projects in the last two years, added the company. The new set-up will also support the asset light balance sheet structure.
After the transaction is completed, Kalmar and MacGregor will continue selling their offerings to customers globally, partnering together with RHI and RCI. As part of the agreement, around 160 RCI employees will move over to Kalmar once the change in ownership structure has been completed.