Cargotec and Konecranes to merge

The statutory absorption merger will see Konecranes be merged into Cargotec. The future company aims to be a leader in sustainable material flow through its vision based on decarbonisation, safety, productivity and efficiency as well as maximizing the lifetime value of the equipment and solutions of its customers.

In March, Konecranes said it would start temporary layoff talks due to the impact of the COVID-19 pandemic.

Cargotec CEO, Mika Vehviläinen, said: “The Future Company will have enhanced opportunities to improve the efficiency in customers’ operations and shape the whole industry forward to a more sustainable and intelligent one. Together we are stronger and our combined R&D resources will enable us to accelerate innovation in automation, robotics, electrification and digitalization.”

Konecranes CEO, Rob Smith, said: “The timing is right, and the logic and fit of this combination are compelling. Konecranes looks forward to starting this journey together with Cargotec.”

The future company had in 2019 illustrative combined sales of approx. €7bn and comparable operating profit of approx. €565m. The future company initially aims to achieve a comparable operating profit in excess of 10%, supported by synergies expected to be approximately €100m annually that are expected to be achieved in full within three years from the completion.

The future company’s name will be determined and announced at a later stage.