Daniel Davis (above) has been removed from his position as president of Favelle Favco Cranes (USA) in a change of management by majority parent Muhibbah Engineering of Malaysia.
The parties are now embroiled over Davis’s ownership of patents and a 10% stake in the company.
Davis set up the Harlingen, Texas operation last year to manufacture crawler and mobile cranes using major components supplied by Caterpillar Industrial Products.
His machines made their debut at Conexpo in March and were launched in Japan in August at Tokyo’s Conet show. Davis himself was seen as the driving force behind the new product range. Designs have now been approved and four units have so far been delivered. It is understood, however, that the business had been planned on the basis of the factory producing 20 to 25 units this year.
Davis was removed without notice on 8 September. According to Davis, he was then approached two days later. “On the 10th they gave me a proposal for me to buy them out.” The asking price was too high, said Davis, so he counter-offered to sell Muhibbah his 10%.
Cheam Tek Siong, group general manager of Favelle Favco Cranes in Malaysia, flew to Texas to implement the reorganisation. “It is just a change of management,” he said. “It is business as usual.” He denied that Muhibbah was looking to withdraw from its US assembly operations.
Davis said he was now “spending time with my lawyers” as well as talking to potential investors in Houston, should Muhibbah improve its offer to sell out to him.
