Kalmar and Rainbow Industries Co. Ltd. (RIC) have entered into an agreement to move intellectual properties for equipment to China. According to the agreement, Kalmar transfers heavy cranes’ related intellectual properties and assets to RIC.
The agreement includes Kalmar’s rubber-tyred gantry cranes, rail-mounted gantry cranes, ship-to-shore cranes as well as automatic stacking cranes, which are currently manufactured and assembled at RIC’s facility in Taicang, China. RIC has been Cargotec’s original equipment manufacturing subcontractor providing assembly services for their business areas since 2020. Cargotec and Rainbow have operated through a joint venture in China since 2013.
As part of the agreement, around 40 Kalmar employees in China are estimated to move over to RIC once the contractual obligations have been completed. The change is estimated to be concluded in September 2022. The planned change is subject to approval from Chinese authorities.
In the future, Kalmar will focus on offering cargo handling equipment in the mobile equipment product categories, straddle and shuttle carriers, Bromma spreaders and lifecycle services. Kalmar will also continue to offer crane automation and crane related services for its global customers.
According to the preliminary estimate, Cargotec would book restructuring costs €25 million in the second quarter 2022 and €11 million in the third quarter 2022 as a consequence of entering into the agreement. The estimated bookings wouldn’t impact Cargotec’s outlook for 2022. Cargotec expects its comparable operating profit for 2022 to improve from 2021, which was €232 million.
Wu Jian, Chairman and President, RIC: “We are very pleased to continue to offer the Genma Kalmar cranes to the global customers. The partnership that we have had for years with Kalmar gives us a strong base for delivering the existing and future projects.”
Arto Keskinen, SVP Horizontal, Kalmar: “This will be an important step for Kalmar. We have had a long partnership with RIC and we are pleased that they would be taking over in China and we could secure a smooth transition to our customers. We will stand behind all existing customer commitments including all agreed deliveries, valid quotations and options. We will also continue to support, develop and offer crane automation solutions and crane services for new and existing customers.”
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