21.07.2011

Terex Chinese crane business struggles

Terex has said that sales at its Chinese truck crane business were lower than hoped and that the company – in which it owns a 50 percent stake – “is struggling a little bit”. It also suggested that market demand was softer in the second half.

Terex acquired its stake in Sichuan Changjiang Engineering Crane Co. Ltd of Luzhou, Sichuan Province, China. When purchased it was said to be the third largest producer of truck cranes in China, with a product range from eight to 160 tonnes capacity.
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Terex Chinese truck cranes

Chief executive Ron Defeo added that it might be better for the company to reduce its holding, since Chinese laws still limit foreign ownership of on-highway crane manufacturers to a maximum of 50 percent. “The joint venture partners’ interests and our interests aren’t always aligned,” he added. “When those interests don’t align, sometimes the business doesn’t always perform at the level you’d like. That’s what has happened here.”
Click here to see Terex acquires Chinese crane company
Click here to see Terex Crane sales flat
Another issue that came out of the call was that $73 million worth of orders for the company's 1,000 tonne AC1000 which were originally due for delivery in 2008 have now been removed from its order book at the end of the second quarter.