Kobelco, Manitowoc end OEM supply agreement
Kobelco Construction Machinery Co., Ltd. (or KCM) of Tokyo, Japan, one of Japan's largest manufacturers of construction equipment, and The Manitowoc Company, Inc. (NYSE: MTW), a leading global manufacturer of cranes and lifting solutions, will not renew their OEM supply agreement, under which KCM supplies Manitowoc-branded lattice-boom crawler crane models with lift capacities under U.S. 150 tons to the worldwide Manitowoc distribution network, and Manitowoc supplies Kobelco -branded all-terrain crane models for marketing in Japan. The global alliance began in November 2003 and will end on November 9th, 2018. KCM will continue to support Manitowoc and its customers, and Manitowoc will continue to support KCM and its customers, with service parts for a period of ten (10) years.
With the market environment changing over the past few years, The Manitowoc Company and KCM Construction Machinery have been re-examining the agreement and discussing the future of their global alliance. Looking ahead at future market conditions, the companies have mutually decided to operate their businesses on their own.
Kazuhide Naraki, President and CEO of KCM, said: "Manitowoc has an outstanding reputation around the world and offered a strong distribution network in regions it serves globally. I can say our partnership was very successful between two highly respected industry players joining forces."
"I strongly feel that both companies share the same approach - focusing on customers with care and bringing to market reliable products which have a high standard of quality and safety. We look forward to a new chapter in growing our businesses globally." Naraki added.
Barry Pennypacker, President & Chief Executive Officer of Manitowoc said: "As a world leader in lattice-boom crawler cranes, Manitowoc provided our customers with a comprehensive line through our alliance with KCM. The company has been an excellent partner, providing our customers with a high standard of product quality and reliability. After nearly 15 years, we have agreed to pursue separate ways developing our own products in the smaller capacity cranes to serve our respective customers. With the implementation of The Manitowoc Way, we will continue to deliver new and innovative quality products, on time, ensuring that our customers continue to have the right product offerings" Pennypacker added.