KCI Konecranes has acquired a EUR3 million (USD3.6 million) major shareholding in Ukrainian crane manufacturer Zaparozhcrane and signed an agreement to co-develop container handling technology for the Ukraine.

KCI Konecranes and its new partner Zaparozhcrane were selected by the Ukrainian Ministry of Transport and Iljicevski Marine Merchant Port (IMMP) to develop and supply new generation ship-to-shore container cranes and rail-mounted gantry cranes.

The agreement was signed this month at a Finnish-Ukrainian Business Forum in Kiev.

IMMP is about to undertake a major redevelopment in a bid to become the Ukraine's leading container terminal.

KCI Konecranes and Zaparozhcrane have had an on-going relationship since 1993, when KCI Konecranes began manufacturing cranes at Zaparozhcrane's Ukrainian factory. Seppo Hoppu, KCI Konecrane's director for Eastern European operations, believes the merger will greatly strengthen KCI's position in the region.

"This deal will strengthen our position in the fast growing markets in the Ukraine and Russia. Additionally we will get a very competitive manufacturing site for global markets," he said.