Konecranes and MHPS
One technology company
Konecranes and MHPS - A combination of 18,000 employees from across the globe.
Over 100 years of strong organic and acquisition-based growth, which all started when KONE Corporation was founded in 1910:
• 1933 – KONE commences crane production
• 1930s/40s – Product range starts to include hoists and harbor cranes
• 1980s – Internationalization efforts gather pace with US expansion
• 1994 – KCI Konecranes is spun off from KONE
World-leading supplier of industrial cranes, workstation lifting systems, container handling equipment and maintenance service. Headquarters in Hyvinkää, Finland.
Up until now, around 11,000 employees in almost 50 countries worldwide. This generates more than EUR 2 billion of annual sales.
For more than 100 years, the company has provided customers with productivity-enhancing lifting solutions as well as services for lifting equipment and machine tools.
Almost 200 years of German-origin engineering heritage and expertise:
• 1819 – First operations in Wetter of company that becomes Demag in 1910
• 1824 – Noell commences operations in Würzburg
• 1906 – Gottwald Port Technology is founded in Düsseldorf
• 2011 – Operations come under Terex ownership
Leading supplier of industrial cranes, crane components and services under the Demag brand.
Port technology expert with a broad range of solutions under the Gottwald and Noell brands.
EUR 1.4 billion business with operations in 16 countries on five continents. MHPS employs about 7,000 people.
200 years of German-origin engineering heritage and expertise.
A VERY COMPLEMENTARY COMBINATION OF STRENGTHS
• Combines a highly complementary set of products.
• Strengthens our service offering on a much wider scale.
• Creates a truly global footprint, so we can serve our customers globally.
• Can reach scale benefits and efficiencies that will allow us to become world class. • Allows for IT infrastructure to be leveraged, improving our processes worldwide.
• Industry-leading resources for continued technology development, for example in automation, software and digitalization.
In service, industrial equipment and port solutions
Unmatched customer offering
• We aim to be a focused industrial lifting & port solutions service and equipment provider. Our aspiration is to create the next generation of lifting.
• With the Demag brand joining Konecranes, we will have a leading portfolio of industrial cranes, crane components and complementary services for customers ranging from small workshops to major industrial enterprises.
• Port Solutions’ products such as automated guided vehicles, straddle & sprinter carriers, terminal tractors and harbor cranes will complement the Konecranes port equipment offering very well.
• The combination of our wide service offering and the enlarged installed base provides us with broader opportunities to offer maintenance services to our customers.
• We will expand our contract base, leverage our global network and continue servicing all makes of cranes.
A global company
Truly international business with operations all across the globe – together we are active in approximately 50 countries with 18,000 employees.
We are a perfect match also from a geographical perspective: while Konecranes offers a particularly strong presence in markets like Northern Europe, North America and China, MHPS adds a strong position in Central and Southern Europe, South America and Southeast Asia.
Substantial growth potential in service business
It is Konecranes’ strategy to focus on the service business, which is less dependent on economic cycles, has high barriers to entry, and offers significant growth potential.
Significant opportunity to expand our service on all makes of cranes and improve our service offering to our customers – and create earnings potential.
Our comprehensive and systematic approach to maintenance – Lifecycle Care in Real Time – supported by world-class tools and processes is the backbone for our service capabilities.
The target is to increase customer value through improved safety and productivity in operations, especially through digitalization.
Opportunity through synergies
We expect synergies of EUR 140 million to be implemented within three years from closing of the acquisition.
We will generate synergies from scale benefits through procurement volumes, optimization in operations and a better capacity utilization.
We also plan to realize synergies through scale benefits in our R&D capacity, as well as in SG&A expenses.