Rainbow-Cargotec JV Company Breaks Ground on New Facility in China

Rainbow-Cargotec JV Company Breaks Ground on New Facility in China

Rainbow-Cargotec Industries Co Ltd (RCI) is a joint venture of Cargotec and Jiangsu Rainbow Heavy Industries Co., Ltd. (RHI) in China. The companies celebrate the ground breaking for RCI’s new facility in Taicang Jiangsu province, China today.

The ground breaking ceremony for the new facility is hosted by Cargotec’s President and CEO Mr. Mikael Mäkinen and President of RHI, General Manager of RCI Mr. Wu Jian. His Excellency Mr. Huang Xing, Ambassador of China to Finland and His Excellency Mr. Lars Backström, Ambassador of Finland to China are invited as the guests of honour in the event.

“This ground breaking in Taicang demonstrates RHI’s and Cargotec’s commitment in combining our forces for future success. We will create new, globally competitive solutions that will certainly benefit our customers. The new facility will have excellent waterway connections to our markets by the Yangtze River and it will increase Cargotec’s delivery capacity,” says Cargotec’s President and CEO Mikael Mäkinen.

RCI will provide leading heavy crane solutions globally and grasp growth opportunities in the Chinese and global markets with a strong local presence, knowledge and experience. The joint venture will focus on ship-to-shore cranes, rubber-tyred gantry cranes, rail mounted gantry cranes and other heavy crane products.

“We have also been very pleased with the good cooperation we have had with the local Taicang government. RCI is expected to bring many employment opportunities in the area and it will also bring many indirect employment effects,” says President of RHI, General Manager of RCI Mr. Wu Jian.

The new facility will be at the forefront of more sustainable manufacturing in China in the industry. Energy and water consumption and emissions, for example, have been carefully considered and minimised. The new RCI site occupies 30 hectares of industrial land and it will have a gross floor area of over 265,000 square meters. Constructions will complete in two years.

RCI joint venture supports Cargotec’s strategy of a strong local presence in Asia. Cargotec is evaluating the listing of Cargotec Marine on the Singapore Exchange. The listing of Cargotec Marine would strengthen its business presence in Asia and secure profitable growth. Over one third of Cargotec’s sales comes from Asia-Pacific region and Cargotec employs approximately 2,500 persons in nine countries in the region. The company’s Asian production units are located in China, India, Korea, Malaysia and Singapore. Part of manufacturing has been outsourced to partner plants, which are mainly located in Asia.


Source: Cargotec, June 18, 2012

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