Kalmar, part of Cargotec, and Rainbow Industries Co. (RIC) have entered into an agreement, according to which, the Finnish port manufacturer will transfer heavy cranes’ related intellectual properties and assets to RIC in China.
The deal would concern Kalmar rubber-tyred gantry cranes (RTG), rail-mounted gantry cranes (RMG), ship-to-shore cranes (STS) as well as automatic stacking cranes (ASC) which are currently assembled and manufactured at RIC’s facility in Taicang, China.
RIC has been Cargotec’s Original Equipment Manufacturing (OEM) subcontractor providing assembly services for Cargotec’s business areas, Kalmar and MacGregor, since 2020 and prior to that Cargotec and Rainbow operated through a joint venture in China since 2013.
As part of the agreement, about 40 local Kalmar employees in China are estimated to move, subject to local legal requirements, over to RIC once the contractual obligations have been completed. The planned change is estimated to be concluded in September.
According to the preliminary estimate, Cargotec would book restructuring costs totaling €25 million in the second quarter of 2022 and €11 million in the third quarter of 2022 as a consequence of entering into this planned agreement. The estimated bookings would not impact Cargotec’s outlook for 2022. The company expects its comparable operating profit for 2022 to improve from 2021 (€232 million).
