Cargotec Corp has finalised the outsourcing of the manufacture of steel components for its cranes, spreaders and other products to an existing Estonian supplier.

The deal with Komas Oy, a Cargotec "preferred steel structure supplier", was announced on 30 November 2011. All 370 employees at Cargotec's component manufacturing operations in Narva, Estonia have transferred to Komas Estonia OÜ, which will continue operations in the existing premises.

In 2007, Cargotec acquired Balti ES in Narva, Estonia that was owned by Odense Steel Shipyard Ltd, an AP Moller-Mærsk Group subsidiary.

At that time, Cargotec was already one of Balti's key customers, says Cargotec spokeswoman Lotta Clausen. "Balti ES offered Cargotec a combination of low-cost manufacturing, the use of Cargotec processes and a very good location."

Clausen explains that since 2009, Cargotec's outsourcing strategy has been to boost flexibility and competitiveness. "Outsourcing component manufacturing to top leading suppliers that are the best in their business means that we can concentrate on final assembly and logistics and focus on our customers' needs for short lead-times."

Komas Estonia OÜ, the Estonian subsidiary of Komas Oy, will be responsible for producing structural steel components for different types of Hiab and Kalmar products. This includes most of the steel components for Hiab demountables, cranes bases, extension beams, booms and other Hiab loader and forestry crane components; and beams and components for Kalmar and Bromma spreaders.

Komas Oy, headquartered in Jyväskylä, Finland, is a global system supplier for the engineering industry. It has facilities in nine Finnish municipalities and factories in Poland and China. The group employs about 1,200 people and its annual turnover is about EUR120 million (USD162 million).