Cargotec exits Chinese JV
Cargotec, the owner of Hiab, Kalmar and MacGregor, has completed the sale of its 49 percent stake in its Chinese based joint venture, Rainbow-Cargotec Industries, to its partner Jiangsu Rainbow Heavy Industries.
As part of the agreement, Cargotec has acquired certain operations and assets of the joint venture from Jiangsu Rainbow, while 160 employees have transferred from the joint venture to Kalmar’s operations in China.
The lapsing joint venture has been renamed Rainbow Industries and will continue to supply Cargotec’s Kalmar and MacGregor operations at their plant in Taicang, China, as a subcontractor for components and assembly services.
A Cargotec statement said: “The change aims to simplify Cargotec’s global supply chain operations. Simplification is needed mainly because the number of complex automation projects has been growing in the past couple of years. The arrangement also supports the asset light balance sheet structure.”