15.07.2015

Kobleco Cranes and Construction to merge

Kobe Steel says that it is considering the merger of its Kobelco Construction Machinery and Kobelco Cranes subsidiaries.

If all goes as planned the two companies will merge at the start of the new financial year in April.

The two companies were split up in 2004, following the Kobelco Construction alliance with the former CNH (Case New Holland) Global in October 2002. Since then the two companies have operated as completely separate businesses.

With combined, with sales of nearly 400 billion yen ($3.3 billion), they make up more than 20 percent of the Kobe Steel group’s total revenues.

The group’s medium-term business sees major potential to expand its machinery-related businesses. In the United States, India, the Middle East and other emerging countries. The group believes that merging the two companies will improve efficiency, from development, procurement and production, to quality control, sales and support.