RAM SingFlex in operation, London Gateway 2014.

NSL will merge the RAM container spreader business of its subsidiary, NSL Engineering Pte Ltd (NSE), with Salzgitter Maschinenbau AG (SMAG)'s PEINER SMAG Lifting Technologies GmbH.

NSL and SMAG signed the merger agreement on 5 December to form "the world's largest independent lifting device group in bulk cargo and container handling".
NSE is a leading player in container lifting devices, while SMAG's grab business is also a global leader in bulk cargo lifting.

Under the agreement, NSE will be merged with SMAG subsidiary PEINER SMAG Lifting Technologies (PSLT) in exchange for NSL receiving a 33.33% equity stake in PSLT, with SMAG holding the remaining stake.

NSL Ltd spokeswoman Yvette Tan tells Forkliftaction.com News that the merged company will be almost three times the size of the current RAM business, and with a broader portfolio of products and a wider geographical coverage of after-sales services.

"Therefore, existing customers will get to benefit from the wider range of bulk cargo and container lifting device products and even more efficient technical support services," Tan explains. "Existing employees should have greater career development opportunities."

According to NSL, the merged company, PSLT, will have access to a potential market significantly larger than just the port equipment sector, including bulk cargo vessels, waste-to-energy incineration plants, scrap metal yards, steel mills, marine dredging and mining businesses.

With the merger, PSLT will be able to offer a full spectrum of bulk cargo and container lifting device solutions to port operators and crane manufacturers worldwide, with strong production, storage and after-sales service support.

Oo Soon Hee, executive director of NSL Ltd, says: "The complementary strengths of both companies should generate significant synergies and serve as a strategic competitive advantage for PSLT to seize further growth opportunities."

Sebastian H Brandes, CEO of SMAG, adds: "Both companies hold a top ranking and will develop further in their market segments to become a leading multi-channel provider. Through the merger we (will be) able to extend our marketability in several regions and provide enhanced order performance, delivery and customer service."

Post-merger, the PSLT Group is expected to generate an annual turnover of about SGD240 million (USD184 million) and have a workforce of over 1,000 employees. Manufacturing bases are located in Germany, China and India. Through its extensive dealer network, the group is represented in more than 70 countries.

Both parties are aiming for the merger to be finalised in the first quarter of 2015.