Kalmar Industries is expanding its interest in South America with acquisition of Equipos y Servicios para Terminales y Puertos SRL (ESTP).

ESTP has been Kalmar's dealer representative in Argentina, Uruguay and Paraguay since 2001. It provides machine commissioning, technical and spare parts support, and equipment repairs and refurbishment in South America.

Kalmar, the container and heavy-duty materials handling equipment arm of Cargotec Corporation, believes this purchase will strengthen its distribution operations in South America.

ESTP's founder and managing director Marcelo Masso, will stay on with the company.

Jim Anastasio, Kalmar Region Americas' president, says Massa will also be on the Kalmar Americas sales and service executive board, reporting directly to the president for Kalmar Region Americas.

"Having a dynamic entrepreneur such as Marcelo Massa leading Kalmar's efforts, the region will no doubt open up more opportunities," he says.

"ESTP has proven to be a customer-focused organisation with competent personnel. We hope to expand on their strengths to increase our presence in the region.

"Due to the positive economic development in Argentina, we anticipate that the acquisition will advance Kalmar's business in the region to include contract maintenance agreements, crane refurbishment projects and other tailored solutions."

Anastasio says Kalmar has been impressed with ESTP's management team and customer relations.

"We decided that we would be better situated if ESTP was a part of our organisation, to take the responsibility to grow our business in the region."

Because of the acquisition, ESTP's role in the region will change. Anastasio says ESTP will now be responsible for Kalmar's sales and service in Argentina, Uruguay, and Paraguay.