Manitowoc to build new crane factory in China

Manitowoc will begin construction on 16 February on a new crane factory in Zhangjiagang, China.

The new facility is scheduled for completion in 2006 and will be more than twice the size of its existing 120,000 square metre (6ha) factory in Zhangjiagang, which it replaces.

Currently, Manitowoc produces Potain tower cranes in capacities from 40tm up to 485tm in Zhangjiagang, which is near Shanghai. The new factory will produce additional tower crane models, as well as components for Manitowoc crawler cranes and Grove mobile telescopic cranes, Manitowoc said. Employee numbers are expected to rise from 300 to approximately 400.

‘This new crane plant is part of our strategy to increase global crane sales and market penetration,’ said Terry Growcock, chairman and chief executive officer of Manitowoc Company Inc. ‘It will strengthen our presence in Asia and enhance our abilities to truly serve the worldwide crane market. This project is precisely the sort of significant growth initiative we intend to fund with our recently completed equity offering.’

In December Manitowoc sold 2,650,000 shares of common stock in an underwritten public offering to raise $90.5m net. Manitowoc said it would use approximately $67.7m of the net proceeds to reduce debt (by redeeming 35 per cent of its 10.5 per cent senior subordinated notes due 2012) and the balance for general corporate purposes.

Manitowoc subsidiary Potain took full ownership of the Zhangjiagang factory in 2000 when it bought out the 32 per cent stake of its local partner, Ling Hong. The same manufacturing quality procedures are applied in ZJG as they are in other Potain factories around the world, with six-monthly internal quality audits and yearly qualification of suppliers and sub-contractors.

In 2003 the Zhangjiagang factory had its operational processes validated by the award of ISO 9001:2000 quality assurance certification from certifying body TÜV of Germany.