Konecranes will create a network of partners to build port cranes in the United States to avoid tariffs designed to eliminate cybersecurity risks.

In May, the US government announced a 25% tariff on foreign-made ship-to-shore (STS) cranes amid fears port equipment made by China’s Shanghai Zhenhua Port Machinery Company (ZPMC) represented a cyber threat.

The tariffs would have increased the domestic price of STS cranes made by ZPMC and Finland-based Konecranes.

Konecranes says with its network of US steel structure providers and subcontractors it is now able to manufacture a full range of domestic manufacturing-compliant port cranes in the US including STS cranes. 

Konecranes has operated in the US for decades and has three crane manufacturing facilities, approximately 2,200 employees and more than 60 branches across the country.

Customers include privately-run ports, intermodal operators and port authorities.

“Konecranes expects the network to grow in states including Ohio, Virginia and Wisconsin in the coming years, and has received initial indications of interest from a number of customers for BABA (Build America Buy America) cranes including STS cranes,” the company says in a statement. 

“Given that STS cranes take several years to produce and deliver, the company does not see any short-term impact on its financials from this initiative.”

ZPMC has denied its cranes present a cybersecurity threat to ports.

The White House, meanwhile, acknowledged Konecranes’ plan to bolster domestic manufacturing.

“In response to the White House-led effort to enhance the security of the maritime environment, Konecranes … is announcing its plans to establish and grow a consortium of US partners, including steel structure providers and other manufacturers, to build ship-to-shore (STS) cranes in the United States to serve North American ports,” the White House says in a statement.

“This combination of Finnish expertise and American industrial capacity will continue to position Konecranes as a global leader in material handling solutions. 

“Konecranes is committed to growing its workforce in the United States as demand for cranes produced by trusted vendors increases. 

“Konecranes estimates that every STS crane built in the United States will require the production of 1,500 tons of US-made steel and over 100,000 labour hours for the whole value chain.”