The Finnish port handling equipment specialist Cargotec has unveiled its plans to exit Kalmar’s heavy cranes business, while it will start evaluating strategic options for MacGregor, including a potential sale of the business, following the failed merger with Konecranes.
Cargotec will 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, according to the announcement.
In addition, the evaluation of the options for MacGregor will cover the whole business area inclusive of its merchant, offshore and services businesses.
“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% 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,” said Cargotec’s CEO, Mika Vehviläinen.
Cargotec’s board of directors has decided to refocus its strategic direction for higher financial performance of the company, which will focus on sustainability and growth in profitable core businesses Hiab, Kalmar Mobile Solutions and Kalmar’s horizontal transportation business (Core Businesses), according to a statement.
“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,” commented Cargotec’s chair of the board, Ilkka Herlin.
