 Konecranes' new Boxrunner straddle carrier |
Konecranes has signed an agreement to buy Indian crane company WMI Cranes Ltd.
The Finnish company is acquiring WMI's shares in two phases. In the first phase, Konecranes bought 51% of the shares for INR1.69 billion (USD37.3 million). In the second phase, expected to take place later in the year, Konecranes will buy the remaining 49%.
The sellers are entitled to a performance-linked part of the purchase price and the maximum price for all WMI's shares is INR3.6 billion (USD79.5 million).
The acquisition is expected to strengthen Konecranes' position in the growing Indian crane market. WMI's net sales in 2010 exceeded EUR30 million (USD41 million) and it has a strong order book to support further sales growth this year.
Company spokeswoman Ann-Cathrine Sandås says that while Konecranes will look for synergy potentials and co-operate "as much as possible" with WMI, the two companies will remain independent with their own organisations.
"[But] our longer term target is to have a single Konecranes organisation in India like we have in other countries," she adds.
Established in 1958, WMI is one of India's leading process and heavy duty crane manufacturer. It employs about 350 people and has an additional contracted workforce of about 600 people. WMI will be consolidated into Konecranes' financial reporting from 1 February.
Separately, Konecranes has introduced a Boxrunner straddle carrier, which it says is a flexible link between ship-to-shore (STS) cranes and automated yard cranes.
Konecranes started the Boxrunner's design process by asking key customers the question: "What are the characteristics of the perfect straddle carrier?"
"We listened to our container-handling customers and incorporated their feedback, resulting in the launch of this special machine, the Boxrunner, a uniquely advanced straddle carrier," says Jen Andreas, general manager of Konecranes Straddle Carriers.
The Boxrunner offers large container terminal operators a flexible means of moving containers from STS cranes to automated stacking cranes. It is adapted to handle all ISO container sizes and stacks two-high at high speed.