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Kobelco to merge Cranes and Construction

Kobelco Construction Machinery and Kobelco Cranes have announced the decision today to merge the businesses at the start of its new fiscal year at the start of April 2016.

Owner Kobe Steel separated out the crane business in 2004 after its Kobelco construction equipment business teamed up with Case New Holland to build excavators. It has now decided to re-merge the two companies in order to strengthen its equipment business ready for further growth. The transaction will see Kobelco Construction “absorb” Kobelco Cranes.

The combined business will have revenues in the region of 400 billion yen ($3.3 billion), the idea to re-merge was first floated in Julylink[/en/news/story/23297/]( See Kobelco to merge cranes and Construction ).

The company said: “This merger is anticipated to improve business efficiency, strengthen product development capabilities, and bolster global development. It will also enable Kobe Steel to pursue new possibilities from the synergy derived from the accumulated technologies of its excavators and cranes. Considerations will continue with regard to the consolidation of domestic and overseas locations”.

In addition to saving money from combining locations, management and procurement, the company believes that it will also strengthen its product development capability. Areas where it thinks it can share technology, include: environmental technologies for fuel efficiency and low noise, basic technology for new materials, and other common elemental technologies.


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