Cargotec will exit the heavy cranes business after the UK regulator blocked a merger with equipment giant Konecranes earlier this week.
The Finnish equipment manufacturer has said it will “refocus its strategy for higher financial performance through sustainability and growth in profitable core businesses,” such as Hiab, Kalmar Mobile Solutions, and Kalmar’s horizontal transportation ‘Core Businesses’.
Cargotec will initiate the evaluation of strategic options of maritime loading business MacGregor, including a potential sale of the business. The evaluation of the options for MacGregor will cover the whole business area inclusive of its merchant, offshore and services businesses.
Going forward, Kalmar would offer eco-efficient cargo handling equipment and lifecycle services in the mobile equipment product categories, straddle and shuttle carriers as well as Bromma spreaders.
Cargotec’s Chair of the Board Ilkka Herlin commented: “This strategic direction and the refocusing of Cargotec demonstrate our commitment to profitable growth, sustainability and the excellence of our people adapting to new challenges.
“The board is convinced that it is the right time to ensure an accelerated but orderly transition to an even more profitable and futureproof business.”
According to the UK Competition & Markets Authority (CMA) final report issued on 29 March, competition remedies submitted by Cargotec and Konecranes – which would have removed all overlapping businesses of the two companies – would not be effective in addressing the CMA’s concerns and thus the planned merger between Konecranes and Cargotec could not be completed.
The Cargotec Board’s decision to exist the heavy crane industry does not impact Cargotec’s outlook for 2022 published on 3 February 2022 in conjunction with the company’s Financial Statements review 2021.
Cargotec expects its comparable operating profit for 2022 to improve from 2021 of €232 million ($259 million).