30.11.2011

Cargotec to sell component operation

Cargotec, owner of Hiab and Kalmar, has agreed a long term outsourcing partnership with Komas, which includes the sale of Cargotec’s component and steel fabrication manufacturing plant in Narva, Estonia.

Komas is one of Cargotec's preferred suppliers of steel fabrications and would remain a major customer of the plant. Narva is Cargotec’s only dedicated component plant and employs around 370. Preliminary plans call for all employees to transfer to Komas. The plant supplies both Hiab and Kalmar.

The potential transaction – it is only a letter of intent at this stage – is part of a larger cooperation which according to Cargotec, supports its plans to focus on its core activities. It also says that deepening its relationship with Komas, it will secure a recognised partner for the supply of components.

The deal is expected to close in the coming months, no details of the transaction have been released.

Cargotec acquired the Narva plant when it purchased Balti ES in 2007 from Odense Steel Shipyard, part of the A.P. Moller–Mærsk Group. At the time it employed 600 and had revenues in the region of €14 million.