Sumitomo Nacco Materials Handling Co Ltd, the joint venture between Sumitomo Heavy Industries Ltd (SHI) and Nacco Industries Inc, has been singled out as an example of successful cross-border business collaboration by a leading US industry magazine.

IndustryWeek.com said research showed the "vast majority" of JVs failed within four to seven years. Few survived 10 years, and less lasted longer than 15 years.

"How, then, to explain the ongoing relationship of Nacco and Sumitomo - an alliance that has thrived for more than three decades?" the report said.

The report said the JV began when Yale and SHI partnered in 1968. Sumitomo entered the forklift business to calm the cyclical nature of its core crane and heavy machinery business, and Yale was looking for a platform to enter the Japanese market.

Everything changed when Eaton Corporation, Yale's parent, spun the company off and sold it to Nacco in 1984. This created the potential for conflict but, apart from changing its name from Sumitomo-Yale Co Ltd to Sumitomo Nacco Materials Handling Co Ltd, the JV proceeded with little change.

Nacco's acquisition of Hyster Co in 1989 was another potential hiccup, but an agreement was reached on distribution and manufacturing in an unorthodox series of meetings which dealt with cultural and language difficulties using a whiteboard to note key points and resolutions.

"Ultimately, the most fundamental explanation of the durability of the partnership comes down to the participants' mutual respect and willingness to find common ground on potentially divisive or even destructive issues," the article said.

"In a decidedly less-than-perfect world, those may well be the critical factors in ensuring the success of any joint venture."