KCI Konecranes has acquired a majority shareholding in Zaporozhcrane, the leading crane manufacturing company in Ukraine. The investment amounts to approx. EUR 3 million.
The deal was made public today at the “Finnish-Ukrainian Business Forum” held in connection with the Finnish Prime Minister Matti Vanhanen’s visit in Kiev, Ukraine. The Ukrainian Vice-Prime Minister, Mr Stanislav Stashevski and a business delegation from Finland headed by Mr. Stig Gustavson, Chairman of KCI Konecranes, also attended the seminar.
KCI Konecranes started to contract manufacture cranes at Zaporozhcrane’s factories already in 1993. Acquiring an ownership stake in the company is the latest step in the formation of a strategic partnership for the purpose of manufacturing heavy-duty cranes for KCI Konecranes. Additionally, the company will continue to supply steel structures for other customers.
KCI Konecranes acquired the majority shareholding in Zaporozhcrane through a holding company. KCI Konecranes aims to reduce its ownership stake below 50 percent. The other shareholders would consist of the company’s operative management and institutional investors.
"KCI Konecranes sees great potential in Zaparozhcrane", says Seppo Hoppu, KCI Konecranes' Director responsible for Eastern Europe. “This deal will strengthen our position in the fast growing markets in Ukraine and Russia. Additionally, we will get a very competitive manufacturing site for global markets.”
Zaporozhskij Zavod Tjazhelogo Kranostroenia or Zaporozhcrane, a Ukrainian privately held company since 1994, is a leader in manufacturing industrial and harbour cranes for the Russian and Ukrainian markets. The crane company was earlier owned and managed by the Ministry of Energy of the Soviet Union and has to date produced over 10.000 cranes. The company was established in 1928 and is located in Zaporozhje, Central Ukraine by the river Dnepr.
Zaporozhcrane possesses manufacturing facilities with a railway connection for production of all mechanical crane components and heavy steel structures including a foundry, forge and heat treatment plant. The company’s premises are leased, and they include 10 hectares of covered manufacturing space. In 2004, the company employed approximately 1100 persons.
Further information can be obtained from
KCI Konecranes Plc
Seppo Hoppu, Director, Eastern Europe, phone: +358-20 427 4100
Teuvo Rintamäki, Chief Financial Officer, phone: +358-20 427 2040
KCI Konecranes is a world leading engineering group specialising in advanced overhead lifting solutions and maintenance services. KCI Konecranes is the world's leading supplier of heavy-duty cranes for process industries and shipyards. KCI Konecranes is a global supplier of special harbour cranes for bulk materials and containers and of mobile container handling equipment like Reach Stackers and Lift Trucks. In 2004, Group sales totalled EUR 728 million. The Group has 4,900 employees in 35 countries.
