Kalmar, part of Cargotec, will relocate production of its rubber-tyred gantry cranes (RTGs) from Shanghai to a facility in Taicang, Jiangsu province.

The relocation is planned for completion by the end of September. About 105 employees at Cargotec Industries (China) Co Ltd's Shanghai multi-assembly unit (MAU) are affected by the change.

Maija Eklöf, vice president of communications for Kalmar, says the number includes "personnel reductions as well as internal transfers and changes of job descriptions". MAU Shanghai currently employs 340 people.

She adds that the move will secure the long-term competitiveness of Kalmar products globally and allows the company more flexibility to meet customer needs.

In July 2011, Cargotec announced it would establish a joint venture with its long-time Chinese partner Jiangsu Rainbow Heavy Industries (Forkliftaction.com News #528).

The Rainbow-Cargotec Industries (RCI) joint venture is now fully operational and has shipped the first RTG cranes from its new state-of-the-art facility in Taicang. RCI employs about 280 people.

Eklöf says of the Taicang plant: "The capacity is quite flexible depending on the order intake volume. Production capacity will not be a limiting factor."

Separately, Cargotec's board of directors has approved a share-based incentive program for management for 2013. Based on the earnings period for the second half of 2013, the potential reward will be delivered in Cargotec class B shares. The shares will be delivered in the northern spring of 2014 and will be released in two tranches in 2015.

If the targets are fully met, the program will cost about EUR6 million (USD8 million). The 42 participants of the program include Cargotec's CEO and members of the executive board.

Cargotec's 2012 sales totalled EUR 3.3 billion (USD4.4 billion). It employs about 10,000 people.