Cargotec Receives Major Order, Strengthens Service Network in Italy

Enlarge Image Kalmar RT Center has been awarded a new 5-year contract to supply its rough terrain container handler to the U.S. Department of Defense.”

November 6, 2008 – Helsinki, Finland-based Kalmar RT Center, LLC (KRTC) has been awarded a new 5-year contract to supply its rough terrain container handler (RTCH) to the Department of Defense. This new contract was awarded by the Tank-Automotive Armament Command (TACOM) in Warren, Mich., and is structured to have multiple delivery order releases over the term of the contract. The value of the initial delivery orders will be over $125 million (U.S.). KRTC expects to receive additional delivery orders in each of those 5 years. Total value of the 5-year contract is estimated to be approximately $385 million (U.S.).

 

The patented RTCH is designed to load and unload ISO 20- and 40- foot containers in adverse and rough terrain operating conditions. The equipment is currently in service with the U.S. Army, Navy, and Marines plus many of the coalition forces. The RTCH has been called the “C-17 of the Army” by more than one field officer because of the proven performance and utility of this special material handling machine.

 

These machines will be produced in the newly constructed manufacturing facility in the San Antonio, Texas, area and will result in 200 new jobs being created in Texas. The new facility will allow KRTC to increase production capacity while supporting United States initiatives such as the Buy American Act and Small Business Plans.

 

Stan Simpson, president and CEO of Kalmar RT Center, said, “We are proud of the critical role that the RTCH has and will continue to play in the U.S. Army’s forward mobility. The RTCH is easily transported, highly reliable, and adaptable enough to get the job done in real world environments. We are excited to be bringing a new manufacturing facility and over 200 new jobs to Texas, and proud to continue to be an important partner with the Department of Defense.”

 

Mikael Mäkinen, president and CEO of Cargotec, parent company of KRTC commented, “Kalmar’s rough terrain container handler is an important part of Cargotec’s special products portfolio and is a clear leader in this market segment as well as applications in special commercial settings and humanitarian missions. The increased manufacturing capacity located in Texas is part of Cargotec’s worldwide efforts to move closer to its customers, solidify the supply chain and increase efficiencies. KRTC will continue to concentrate on product support, logistics, and training for these container handlers and other Cargotec products supplied to the United States military and coalition forces. This new contract and U.S. manufacturing facility will strengthen Cargotec’s position in the North American markets.”

  

Separately, Cargotec’s Kalmar business area providing container handling solutions has acquired 80 percent of two Italian service companies, CVS Technoports S.r.l. and CVS Service S.r.l. The remaining 20 percent of the two companies’ shares will remain in the ownership of the CVS Ferrari Group. The two companies’ combined sales turnover in 2007 was approximately EUR 8 million and the companies currently employ 65 people.

 

Subsequent to the transaction, the companies will work under the name Officine Cargotec Ferrari. The companies will focus on developing the service offering towards container and material handling customers in Italy. Through the acquisition the companies will be able to offer a wide range of services related to CVS and Kalmar equipment as well as third party equipment.