Japanese construction equipment manufacturer Kobelco has stated that it has no plans to divest its crane operations on the back of a worldwide tie-up with earthmoving equipment manufacturer CNH.
CNH, formed in 1999 when Fiat-controlled New Holland acquired Case of the USA, is to buy an initial 20% of Kobelco Construction Machinery, with an option to increase that up to 35%. The acquisition is part of a deal to form a global alliance for the production and marketing of crawler excavators. CNH does not produce or sell cranes.
Kobelco is the second Japanese crane manufacturer to seek an alliance with CNH. Sumitomo Construction Machinery, together with its US subsidiary Link-Belt, also has a relationship with Case, though Link-Belt’s independent crane operation is not part of this deal. The Sumitomo relationship is not affected by the Kobelco deal, according to CNH and Kobelco.
Gary Tsuchida, spokesman for Kobelco’s parent company Kobe Steel, said that the CNH deal would have no impact on Kobelco’s crane business, other than that Kobelco Construction Machinery (Europe) BV would next year come under the management of Fiat-Kobelco, a new company in Italy which replaces CNH’s Fiat-Hitachi joint venture. Similarly, with Kobelco America Inc. becoming 65% owned by CNH, the Texas-based crane sales and marketing operation now comes under the control of CNH.
Tsuchida emphasised that cranes were not included in the CNH deal and Kobelco had no intention to move out of the industry. “Cranes are our forte,” he said.
CNH is the world’s third largest manufacturer of construction equipment while Kobelco is the fourth largest producer of hydraulic excavators.