Tadano to build carriers for Kobelco's rough terrain model

Japan: Tadano and Kobelco Construction Machinery have signed an agreement under which Tadano will manufacture the carriers of Kobelco's rough terrain cranes. The two companies have also agreed joint procurement and will use common parts for their RTs.

In a joint statement the companies said that the move would cut costs in development, parts procurement and manufacturing. Between the two companies, the arrangement is projected to increase profitability by ¥2bn ($18m). Tadano will begin supplying Kobelco with carriers in the second half of fiscal 2001 (which starts October 2001).

Each company will continue to design and manufacture its own uppers.The deal also excludes marketing and servicing – each company will continue to market its own product and provide service support.

Demand for RTs in Japan peaked at 4,500 units in 1991. In fiscal 1999, domestic demand was 1,500 units. Demand is forecasted to be flat this year, the companies said, and they saw no early recovery in demand.