13.06.2014

Cargotec sells Indian engineering centre

Cargotec, owner of Hiab, Kalmar and MacGregor is to transfer its engineering centre in Pune - Cargotec Engineering India-to engineering and information management services company Citec.

Citec, like Cargotec is based in Finland and has annual revenues in the region of €70 million. The transaction includes the transfer of Cargotec's current engineering business and its 110 employees to Citec. The parties have agreed not to disclose the transaction value.

Cargotec's Pune engineering centre has been involved in engineering projects for the three divisions and the deal includes a long term partnership agreement which will see Citec provide Hiab, Kalmar and MacGregor with engineering and project management services, as well as technical documentation from India and its other locations.

Citec has been working in India for 10 years, and has more than 530 employees at offices in Mumbai, Chennai, Bangalore and Pune. After the divestment Cargotec will still have 315 employees in various locations in India.

Cargotec says that the partnership with Citec will allow it to focus on its core businesses in India while utilising competitive engineering services in a more flexible and effective way.

Kalmar president Olli Isotalo said: "Cargotec has sought an engineering partner in India, and Citec's solid experience and track record in working globally from India made the decision straightforward. This partnership allows Cargotec better flexibility and efficiency, while simultaneously offering great career opportunities for our 110 engineers in Pune. Our strategic intent is to continue to grow and strengthen the market position of the Hiab, Kalmar and MacGregor businesses in India."

Citec chief executive Martin Strand added: "This is a significant step for our operations in India, and it also provides great business opportunities elsewhere. We are ready to serve Cargotec proactively according to our strategic intent, with smart engineering solutions and a wide competence".