KCI Konecranes Aquires Mexican Licensee

KCI Konecranes has acquired its Mexican licensee, Gruas Mexico S.A de C.V. The Group previously held a 10% share of the company. Mexico is the second largest economy in Latin America with a strong export driven manufacturing sector.

Gruas Mexico is located near Mexico City and has the capability to produce the entire range of Konecranes equipment. Gruas Mexico is the market leader in heavier industrial cranes in Mexico. The main industries of interest to KCI Konecranes in Mexico are undergoing heavy investments to modernize and increase capacity which also gives opportunities for KCI Konecranes Maintenance Services.

This acquisition is a logical continuation of the Group's growth strategy. After the NAFTA-agreement, the Mexican economy has developed very well. The Group intends to increase its presence also in other parts of Mexico, in particular in the North.

The annual sales of Gruas Mexico in 1999 were 5 million USD. Including direct sales, Group total Mexican sales now exceed 20 miilion USD. Gruas Mexico has sales representation in El Salvador, Costa Rica, and Panama and crane maintenance branches in Mexico City and Monterrey. The former owner and majority shareholder, Rogelio Sandoval, as well as his staff will join the KCI Konecranes Group.

"This is already our fourth bolt-on acquisition during this year", says Dr Stig Gustavson, President and CEO." Within the Group we have developed special resources for rapid integration of acquired companies into the Group's business structure, including its services and products offering. Although these acquisitions have not been very large, the Group maintains both financial and operational capacity for larger acquisitions."

For further information, please contact:
Charles Vanarsdall, President, Region Americas,
tel. +1-937-325 5420

Dr Stig Gustavson, President and CEO,
KCI Konecranes International Plc, tel.+358-20 427 2000