Carogtec plans to change joint venture ownership structure in China
Published by Jessica Casey,
Editor
Dry Bulk,
Cargotec and Jiangsu Rainbow Heavy Industries Co. Ltd. (RHI) plan together to change the ownership structure of their joint venture Rainbow-Cargotec Industries Co. Ltd (RCI) in China. The joint venture was established in 2012 and since then, RCI has successfully manufactured port and offshore cranes for Kalmar and MacGregor business areas at the factory in Taicang, China.
The companies have entered into an agreement where Cargotec will sell its 49% ownership in RCI to the joint venture partner, and simultaneously acquire certain operations and assets from RHI. According to the preliminary estimate, Cargotec will book a cost affecting comparability totalling €35 million in its 2Q20 result as a consequence of the transaction.
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 will also support the asset light balance sheet structure.
After the transaction is completed, Kalmar and MacGregor will continue selling their offering to customers globally, partnering together with RHI and RCI. As part of the agreement, about 160 RCI employees are estimated to move over to Kalmar once the change in ownership structure has been completed.
Read the article online at: https://www.drybulkmagazine.com/material-handling/11052020/carogtec-plans-to-change-joint-venture-ownership-structure-in-china/
You might also like
IMO approves net-zero regulations for global shipping
Draft regulations will set mandatory marine fuel standard and GHG emissions pricing for shipping to address climate change.