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Cargotec to exit Kalmar’s heavy cranes business

Cargotec plans to exit Kalmar’s heavy cranes business and begin evaluating strategic options for MacGregor.

The changes are part of the company’s strategy for higher financial performance through sustainability and growth in profitable core businesses.

Cargotec’s board of directors decided to focus on sustainability and growth in profitable core businesses, including Hiab, Kalmar Mobile Solutions and Kalmar’s horizontal transportation business.

“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,” said Cargotec board chair Ilkka Herlin.

As well, Cargotec will initiate an evaluation of strategic options of MacGregor including a potential sale of the business.

The evaluation will cover the entire business area inclusive of its merchant, offshore and services businesses. MacGregor is global leader in sustainable maritime cargo and load handling solutions.

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Cargotec will also shift Kalmar’s focus towards mobile solutions and will start planning an exit from the heavy port cranes business. Going forward, Kalmar would offer industry shaping, eco-efficient cargo handling equipment and lifecycle services in the mobile equipment product categories, straddle and shuttle carriers as well as Bromma spreaders.

Hiab is a leading provider of on-road load handling equipment, intelligent services, smart and connected solutions and will be at the core of Cargotec’s strategy. Hiab’s business portfolio will remain the same, but Cargotec plans to further accelerate the development of Hiab’s M&A pipeline.

Furthermore, Cargotec plans to review its operational model to support the refocused group. In the next 12 months, Cargotec’s capital allocation priorities include acceleration of M&A, research and development investments in electrification, robotics and digitalization as well as Cargotec’s climate programme Mission Climate.

These planned actions are subject to normal local legal requirements and works council consultations.

Cargotec’s Core Businesses will support customers with lifecycle services as well as with equipment and technologies. Automated, robotized and zero emission equipment help Kalmar and Hiab customers to overcome sustainability challenges.

“Cargotec refined its strategy in April 2021 with sustainability and profitable growth as breakthrough objectives. Our vision remains, but we will further focus our businesses. That would enable us to accelerate M&A and R&D investments in our profitable core and I’m confident that with our refocused strategic direction we will be well positioned to capture growth in industry trends of electrification, automation and digitalization,” said Cargotec CEO Mika Vehviläinen.

“With this planned balanced portfolio, we will support our customers with lifecycle services as well as market leading equipment and technology in our profitable Core Businesses Hiab and refocused Kalmar. These are recurring businesses with already above 10 percent comparable operating profit margins. The markets are structurally attractive and we hold leading market positions there. We are now planning to exit or evaluate strategic options for the project businesses where we have been less successful.”