Japanese crane manufacturer Kato and Indian crane and telehandler manufacturer ACE (Action Construction Equipment) have formed a 50/50 joint venture to manufacture high capacity mobile cranes in India - ACE Kato Pvt.Ltd.
The deal is a culmination of more than two years of discussion and negotiations.
The cranes will be targeted not only at the domestic Indian market but also for export worldwide. The range will eventually include truck and Rough Terrain cranes as well as crawler cranes. Kato will lead product the engineering, design and technology, while ACE will be responsible for manufacturing, sourcing and what it refers to as ‘localisation’.
The official JV commencement ceremony
The joint venture has taken over an 11 acre manufacturing plant in Haryana and plans to invest around ₹200 crore ($21 million) to develop the facility, with advanced production systems and technology, as well as product development. The two companies have also agreed to make additional investments in phases as it comes on stream, in order to expand capacity and add further manufacturing capabilities.
ACE executive director Sorab Agarwal said: “ACE Kato marks a defining milestone in our growth and reinforces our long term commitment to strengthening India’s construction equipment manufacturing ecosystem. For more than three decades, ACE has been at the forefront of indigenous manufacturing and has built a strong foundation through engineering excellence, operational capabilities and customer reach.”
“By partnering with Kato, we are combining globally proven Japanese technology with India’s manufacturing strengths to create a world class platform for high capacity crane manufacturing.”
“Our vision extends beyond manufacturing products. We are building a long term technology and manufacturing partnership focused on creating a strong, future ready crane manufacturing platform in India. This phased approach will enable us to address the evolving requirements of customers while strengthening our competitiveness across domestic and international markets.”
Kato director Tomoyasu Kato added: “ACE has established itself as one of India’s most respected construction equipment manufacturers with strong manufacturing capabilities, a robust supplier ecosystem and an extensive market presence. Through ACE Kato we are creating an additional manufacturing base within the Kato global production network while working together to deliver reliable, technologically advanced crane solutions for customers in India and overseas markets.”
ACE is based in Palwal, Haryana and was established in 1995. Today, it claims to be the world’s largest manufacturer of pick & carry cranes. Its full range, however, includes Rough Terrains, crawler cranes, tower cranes, truck cranes, aerial work platforms, telehandlers and forklifts, along with other construction equipment and agricultural equipment. See: New models for ACE
In India, the company works through a sales and service network with more than 125 locations, supported by 13 regional offices. While not a major part of its business, the company already exports its machines to 42 countries.
In mid 2020 Mark Darwin interviewed Sorab Agarwal of ACE for Cranes & Access– See: ACE High on page 20
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