Konecranes

Last updated
Konecranes Oyj
Type Julkinen osakeyhtiö
Nasdaq Helsinki:  KCR1V
Industry Engineering and service
PredecessorCrane division of Kone
Founded1994
Headquarters,
Key people
  • Christoph Vitzthum (chairman)
  • Rob Smith (president and CEO-)
  • Teo Ottola (CFO)
[1]
ProductsHeavy and standard lifting cranes and service
RevenueDecrease2.svg €3.179 billion (2020)
Increase2.svg €173.8 million (2020)
Increase2.svg €122.9 million (2020)
Total assets Increase2.svg €4.017 billion (2020)
Total equity Increase2.svg €1.251 billion (2020)
Number of employees
Increase2.svg 17,027 (average, 2020)
Website www.konecranes.com
Footnotes /references
[2] [3]

Konecranes Oyj is a Finnish company, headquartered in Hyvinkää, which specialises in the manufacture and service of cranes and lifting equipment. Konecranes products are made for industries handling heavy loads meaning ports, intermodal terminals, shipyards and bulk material terminals. [4]

Contents

History

The company was initially a division of the Finnish company Kone, which began to manufacture cranes and hoists in the 1930s, but was spun off as an independent company in 1994 when KONE underwent extensive restructuring. [5]

Early years with KONE, 1910-1994

Konecranes is a Corporate spin-off of Kone, which was founded in 1910. But it was not until in 1933 when KONE Corporation started to build sizeable electric overhead traveling cranes, mainly for the pulp and paper and power industry. Three years later it started to manufacture electric wire rope hoists. [6]

In 1947 the company started to make harbor cranes [6] and in the post-war economy the harbor cranes business line experienced strong growth. In the 1960s KCI Konecranes signed the first preventive maintenance contract with a customer. [6]

In 1973 the company began to expand internationally and it bought the Norwegian company Wisbech-Refsum. In 1983 the company established R&M Materials Handling in Ohio, which was its first foothold in the US, and in 1986 the company acquired Verlinde of France. The organization was changed in 1988 and the crane operations were organized then into the KONE Cranes Division of KONE Corporation. [6]

Lloyds British Testing (which had operations in the UK and Australia) was acquired in 1991 at which time the company started its first office in the UK. During the same year a large restructuring program was launched. Because of this, crane production facilities were cut from 19 to 4 by 1994. [6]

KCI Konecranes, 1994-2006

KCI Konecranes was formed on 15 April 1994, when KONE Corporation group made some radical changes before it was listed on the Helsinki Stock Exchange. KONE kept its elevator business and sold others, including the operations of its crane division. Two years later also KCI Konecranes was listed on the Helsinki Stock Exchange [5] and has since that grown to become a constituent member of the benchmark OMX Helsinki 25 index. [6]

In 1997, KCI Konecranes expanded into Germany by acquiring German MAN SWF Krantechnik. Later KCI Konecranes experienced high organic growth in Germany, and in 2000 it made several bolt-on acquisitions. [6]

In 2002, KCI Konecranes made history in China: it was the first foreign crane company to receive a complete range of business licensees (including import and export). Also in Japan a milestone was achieved by establishing a joint venture agreement with Meidensha Corporation. After an acquisition of Swedish SMV Lifttrucks AB in 2004 reach stackers and lift trucks were added to the product range. A year later, KCI Konecranes acquired German R.STAHL AG's material handling division, R.Stahl Fördertechnik and the following year MMH Holdings, Inc. [6]

Stig Gustavson was the company's first CEO from 1994 to 2005 and after which he continued as a chairman of the board. [7]

Konecranes, 2006-2009

The slogan of Konecranes: Lifting businesses Konecranes lifting businesses SignalPAD.jpg
The slogan of Konecranes: Lifting businesses

The second CEO, Pekka Lundmark (2005–2015) joined KCI Konecranes in 2004, before that he had worked e.g. for Hackman and Nokia. [8] In 2006 KCI Konecranes launched a new refocused and unified global master brand strategy and identity, and the "KCI" was dropped from the brand name and the slogan "Lifting Businesses™" was introduced. [6]

In 2007 all rights to German straddle carrier manufacturer Consens Transport Systeme GmbH's products were acquired and straddle carrier manufacturing was started. Other acquisitions included Norwegian Kongsberg Automation AS and Swedish Reftele Maskinservice AB. [6]

In 2008 Konecranes produced about one in ten of the world's cranes, [9] of which around 80% are for use in factories and the remainder at ports. [10] Konecranes wanted to increase its presence in the Japanese hoist market, and so it raised its share holding in Meiden Hoist System Company Ltd (MHS) from 49 to 65 percent. It also wanted to expand its activities in Spain so it acquired crane, hoist and service companies Eydimen 2000 S.L. and Ausió Sistemas de Elevación S.L. Other acquisitions of that year were made in Scandinavia and in the UK. [6]

In 2009 Konecranes entered a new business segment—aluminum rail systems and manipulators—with two acquisitions. It also introduced an industrial crane, SMARTON®, which was said to be capable of reducing power consumption and energy cost by up to one third. Konecranes bought 65% of Sanma Crane manufacture Co. Ltd., one of the leading hoist and crane manufacturers in China. [6]

Konecranes, 2010-2014

In 2010 Konecranes announced six acquisitions related to Machine Tool Service (MTS) in Denmark, in the UK and in the USA. In 2011 Konecranes acquired WMI Cranes Ltd. (WMI) from India and Saudi Arabian crane manufacturer Saudi Cranes & Steel Works Factory Company Limited (“Saudi Cranes”). [6] It also won a contract worth of 80 million Euros to supply the Abu Dhabi Ports Company (ADPC) a container terminal operating system (TOS) and 30 automated stacking cranes (ASCs). [11]

In 2011 Georgia Ports Authority (GPA) ordered 20 RTG cranes and four Super Post Panamax STS (ship-to-shore) cranes for Port of Savannah. [12] The new Cai Mep International Terminal (CMIT) in Vung Tau province of Vietnam ordered 6 port equipment in 2011. Konecranes set up an office in Vietnam. [13]

In 2012 Konecranes introduced a hybrid power option for its RTGs (Rubber tyred gantry crane). With the help of new hybrid (diesel/electric) power sources for RTGs, diesel consumption at ports can be reduced by over 60 percent. [14] The first electrified rubber-tyred gantry cranes (ERTG) in the United States were unveiled by the Georgia Ports Authority (GPA) in December 2012. The new technology reduces fuel consumption by an estimated 95 percent. GPA developed the new ERTG system together with Konecranes, Conductix-Wampfler and Georgia Power. [15] In October 2012 3 sixteen-wheeled RTGs were delivered to the Slovenian Luka Koper Container Terminal, which is the largest such terminal in the Northern Adriatic and which has more than ten machines from Konecranes in use. [16] During the same year Konecranes won a tender to supply its CXT Wire Rope Hoists to CITIC Pacific’s Sino Iron project worth $5 billion. The project in Western Australia's Pilbara region is the largest magnetite iron ore mining and processing project in Australia. [17]

In 2013 Konecranes launched the world's first hybrid reach stacker for container handling. Its lifting capacity is 45 tons and it will cut fuel consumption by around 10 litres per hour. [18] In March 2013 Konecranes launched a Remote Monitoring and Reporting tool, TRUCONNECT. It allows lift truck operators to track the usage, efficiency and productivity of their lift trucks through a remote connection. The data is transmitted wirelessly to the Konecranes Remote Data Center, where it is analysed and compiled in online views and reports, accessible 24/7 through a password-protected customer portal. [19] In June 2013, Konecranes launched a new Automated RTG (ARTG) system. It copes with wide range of surface variations in RTG container yards. [20] In November 2013, Konecranes developed an auto start-stop feature that turns off the lift truck engine when it idles for a period of time. This function helps reduce fuel consumption by 5-15% along with CO2 emissions. [21] In 2013 Konecranes got a contract to deliver the first automated container yard for Indonesia state owned terminal operator, Indonesia Port Corporations, PT Pelabuhan Indonesia III (Pelindo III). The value of the order, which consists of 10 ship-to-shore (STS) cranes, 20 automated stacking cranes (ASC) and five straddle carriers (SC), is thought to be more than €100M. [22]

In 2014 Konecranes completed a delivery of 20 stacking at Port Jersey in the Port of New York and New Jersey. [23]

Konecranes, 2015-

In April 2015 CEO, Pekka Lundmark was nominated as the new CEO of Fortum. He was followed by Panu Routila who joined the company from Ahlström Capital where he had been president and CEO since 2008. In August 2015, Konecranes announced merger with US based Material Handling solutions[ buzzword ] company Terex. The merger was treated as "Merger of Equals". [24] [25] However, in May 2016, Konecranes signed an agreement to acquire from Terex Corporation its Material Handling & Port Solutions segment against consideration consisting of cash and shares and to terminate the previously announced business combination agreement. [26] [27] [28]

The position of chairman of the board was changed in March 2016 when Stig Gustavson was followed by Christoph Vitzthum. [29]

In January 2017, Konecranes completed the acquisition of Terex Corporation's Material Handling and Port Solutions (MHPS) business. [30] The consideration for the MHPS business was US$595M and €200M (US$212M) and 19.6M new class B shares, which makes Terex a 25% shareholder in Konecranes. Based on 2015 financials, Konecranes and MHPS had aggregated sales of approximately €3500M (US$3700M) and 19.000 employees. [31]

In September 2019 Konecranes announced it was refreshing some of its products in three new series of industrial cranes. The S-series crane, which is suitable for a number of industrial lifting needs, has replaced the traditional steel cable with synthetic rope. The C-series chain hoist and M-series crane were also introduced, with the latter focusing on heavy lifting needs in particular. [32] In October 2019 Konecranes appointed Rob Smith as president and CEO. He is starting in the position in February 2020 and meanwhile the company's CFO and Deputy CEO, Teo Ottola, will act as the interim CEO. Smith was previously working at AGCO Corporation as Senior Vice President & General Manager, Europe and Middle East. The former president and CEO Panu Routila left the company on the same day. [1] In December 2019, Konecranes said it would acquire the 50% stake in its MHE-Demag JV held by partner Jebsen & Jessen to improve its market position in Southeast Asia. The deal, worth around EUR 147 million, closed in January 2020. [33] [34] [35]

On October 1, 2020, Cargotec and Konecranes announced that they have agreed to a merger. The deal will require two thirds of the shareholders and is expected to complete in the fourth quarter of 2021. [36]

Organization

Konecranes SMARTON winch Medium Konecranes SMARTON winch hyvinkaa finland 2009.jpg
Konecranes SMARTON winch

The president and CEO of Konecranes is Rob Smith, who started in February 2020 [1]

In March 2021 the Konecranes Leadership Team consisted of 9 members: Rob Smith (CEO), Teo Ottola (CFO), Fabio Fiorino, Timo Leskinen, Mika Mahlberg, Juha Pankakoski, Carolin Paulus, Sirpa Poitsalo and Topi Tiitola. [37] [1]

Konecranes has around 17,000 employees in 50 countries. [38] and it is arranged into three business areas: service, industrial equipment and port solutions. [39]

Industrial equipment

Konecranes Industrial Equipment business division offers hoists, cranes, and material handling solutions[ buzzword ] for e.g. industries in automotive, metal production, waste-to-energy, pulp and paper industry and wood industry. The division's brands are Demag, SWF Krantechnik, Verlinde, R&M Materials Handling, Morris Crane Systems, and Donati. [39] The business area offers products like industrial cranes, wire rope and chain hoists, crane components, workstation lifting systems, manual hoists, and medium to heavy forklifts. [4]

Service

Konecranes Service business division offers maintenance and modernization services in 600 locations in 50 countries. It also has service products like inspections, preventive maintenance programs, repairs and improvements, on-call service, spare parts, consultation and modernizations. [4] [39]

Related Research Articles

Cargotec Oyj is a Finnish company that makes cargo-handling machinery for ships, ports, terminals and local distribution. Cargotec was formed in June 2005 when Kone Corporation was split into two companies to be listed: Cargotec and new KONE.

Hydrauliska Industri AB (HIAB) is a Swedish manufacturer of loader cranes, demountable container handlers, forestry cranes, truck-mounted forklifts and tail lifts. The company is owned by the Cargotec Corporation.

FKI (company)

FKI was a British engineering and manufacturing company headquartered in Loughborough, Leicestershire. For many years listed on the London Stock Exchange and a constituent of the FTSE 250 Index, it was taken private by buyout firm Melrose in July 2008.

Kone Finnish elevator manufacturer and engineering company

Kone Oyj, founded in 1910 and headquartered in Espoo near Helsinki, Finland, is an international engineering and service company employing over 60,000 personnel across 60 countries worldwide. In addition, Kone builds and services moving walkways, automatic doors and gates, escalators and elevators. The company provides local service for builders, developers, building owners, designers and architects in 1,000 offices in over 50 countries.

West Port, Malaysia

Westports Malaysia Sdn Bhd is a multi-cargo terminal located on Pulau Indah, Port Klang, Malaysia which is accessible by road via Pulau Indah Expressway, connecting to the KESAS Highway. On 1 October 2013, Pulau Indah was directly connected to the Malaysian Administrative Capital, Putrajaya via the South Klang Valley Expressway.

Demag

Demag Cranes AG is a German heavy equipment manufacturer now controlled by Japan-based Tadano via a $215 million deal. The roots of Demag date back prior to its formation, but became Märkische Maschinenbau-Anstalt, Ludwig A.-G in 1906 as the biggest crane building company in Germany employing 250-300 people. The company was a manufacturer of industrial cranes that included types like, bridge cranes, hoist (device), overhead cranes, Gantry crane to name a few. In 1910 came the hour of the Deutsche Maschinenfabrik in Duisburg – known worldwide by its telegram abbreviation Demag. In 1973 The Mannesmann group assumed ownership of Demag. Since that time the company has continued to grow and change. Parts of the company under core business structuring moved from its ownership to focus the main concept of the company.

KION Group

Kion Group AG is a German multinational manufacturer of materials handling equipment, with its headquarters in Frankfurt, Hesse, Germany. Its principal products are intralogistics, warehouse automation equipment, and industrial (forklift) trucks. KION Group was founded in 2006 by the demerger of The Linde Group's materials handling equipment operations. It is the world's second-largest manufacturer of forklifts measured by revenues.

Terex American worldwide manufacturer of lifting and material-handling plant

Terex Corporation is an American worldwide manufacturer of lifting and material-handling plant for a variety of industries, including construction, infrastructure, quarrying, recycling, energy, mining, shipping, transportation, refining and utilities. The company's major business segments include aerial work platforms, construction cranes, bulk-material hauling machines, road-paving machines, and container-port cranes.

M. D. Moody & Sons, Inc.

M. D. Moody & Sons, Inc. was a privately owned construction equipment distributor and heavy machinery service company headquartered in Jacksonville, Florida. The firm was established in 1913 by Maxey Dell Moody who wanted to serve the needs of road construction businesses by distributing construction equipment. In 1946 the firm was incorporated to M. D. Moody & Sons, Inc. and by 1980 under Maxey Dell Moody, Jr. diversified into the Moody companies Moody Truck Center, Moody Light Equipment Rental, Moody Machinery Corporation, Moody Fabrication & Machine, Dell Marine, and MOBRO Marine, Inc. In 2009 M. D. Moody was forced to file for Chapter 11, Title 11, United States Code bankruptcy and became defunct in 2013. As of 2020 the three Moody companies still in operation are MOBRO Marine, Inc., Dell Marine and Dell Marine Tug and Barge.

APM Terminals is an international container terminal operating company headquartered in The Hague, Netherlands. It is one of the world's largest port and terminal operators as well as providing cargo support and container Inland Services. The company is ranked the fifth largest container terminal operator. It operates 74 port and terminal facilities in 40 countries on five continents, with five new port projects in development, as well as over 100 Inland Services operations providing container transportation, management, maintenance and repair in 38 countries, for an overall global presence of 58 countries.

CVS Ferrari dates back to the 1940s, when it was previously known as THE FERRARI BELOTTI S.p.A. Belotti was the first company to design and build mobile handling equipment specifically for ports from their manufacturing facility on "Ponte Canepa" wharf.

Kinetic Concepts

Kinetic Concepts, Inc., (KCI) is a global corporation that produces medical technology related to wounds and wound healing. KCI produced the first product developed specifically for negative pressure wound therapy. In 2013, the company employed 5,000 people and marketed its products in more than 25 countries. Its headquarters is in San Antonio, Texas.

Tadano Ltd. is the largest Japan-based manufacturer of cranes and aerial work platforms. The company is one of largest crane manufacturers in the world.

Jebsen & Jessen Group is a diversified industrial group with operation offices across South East Asia and beyond. It is a third generation family-owned enterprise and part of the Jebsen & Jessen Family Enterprise.

Genie (Terex)

Genie is an American company owned by Terex which manufactures work lifts and platforms used in construction, maintenance, warehouse stocking, and equipment installation. Founded in 1966 by Bud Bushnell, the company operated independently until acquired by Terex in 2002. Genie operates in locations worldwide, headquartered in Redmond, Washington, United States. The company marked its 50th anniversary in 2016.

Allcargo Logistics Indian logistics company

Allcargo Logistics Ltd is an Indian logistics company, headquartered in Mumbai. Its services comprise global multimodal transport operations, pan-India container freight stations, inland container depots, third-party logistics, warehousing, contract logistics and logistics parks. The company operates across more than 180 countries through more than 300 offices. As one of India's largest publicly listed logistics companies, Allcargo Logistics has a consolidated revenue of ₹7,346 crore as of March 2020.

Honeywell Intelligrated [sic] is a material handling automation and software engineering company based in Mason, Ohio. In 2017, Honeywell Intelligrated reported revenue of $1 billion. Honeywell Intelligrated has production and service locations in the United States, Canada, Mexico, Brazil, and China.

Acelity

Acelity L.P. Inc., was a privately held medical device company. It was a non-operating holding company who wholly owned subsidiaries developed advanced wound therapeutics products. The advanced wound therapeutics business was conducted by Kinetic Concepts, Inc. (KCI) and its subsidiaries, including Systagenix.

American Crane Corporation is an American manufacturer of construction cranes based in Wilmington, North Carolina. It manufacturers lattice boom crawler cranes with capacities ranging from 50 to 275 tons. The American Crane Corporation was founded in 1882 as the Franklin Manufacturing Company, and in 1892 the name changed to American Hoist & Derrick. The company manufacturers terrain cranes, crawler cranes and tower cranes. In 1998 American Crane Corporation was acquired by Terex for $27 million. The purchase of American Crane Corporation brought Terex a manufacturer of lattice boom cranes.

NUTEP

NUTEP container terminal is a container terminal at the Novorossiysk Sea Port for ro/ro, container and general cargo. It was built in 2002—2004 as a subsidiary of Russian stevedoring holding DeloPorts.

References

  1. 1 2 3 4 "Konecranes vaihtaa toimitusjohtajaa – Routila lähtee heti". Yle Uutiset (in Finnish). Retrieved 2019-10-14.
  2. "Governance and Financial Review 2020" (PDF). Konecranes. Retrieved 2021-03-09.
  3. "KCR, Konecranes Oyj". Nasdaq. Retrieved 2018-10-06.
  4. 1 2 3 "Konecranes Abp". Reuters. Archived from the original on 2016-03-04. Retrieved 2013-04-05.
  5. 1 2 "Market quotes: Konecranes Oyj". Kauppalehti. Archived from the original on 2008-12-28. Retrieved 2008-07-30.
  6. 1 2 3 4 5 6 7 8 9 10 11 12 13 "Konecranes – History". Konecranes. Retrieved 2013-04-02.
  7. "Konecranes – Stig Gustavson". Konecranes. Retrieved 2013-04-02.
  8. "Konecranes – Pekka Lundmark". Konecranes. Archived from the original on 2013-04-17. Retrieved 2013-04-02.
  9. ben-Aaron, Diana (30 July 2008). "Konecranes Rises Most in 10 Years on Earnings, Target". Bloomberg . Retrieved 2008-07-30.
  10. Marsh, Peter (28 July 2008). "Konecranes proves a tower of strength". Financial Times . Retrieved 2008-07-30.
  11. "80 million Euro contract for Konecranes at Abu Dhabi Ports Company, December 20, 2010". Port Technology. Retrieved 2013-04-10.
  12. "KoKonecranes receive order for 24 cranes at GPA's Savannah Port, March 28, 2011". Port Technology. Retrieved 2013-04-10.
  13. "Konecranes supplies reach stackers to Vietnam's Cai Mep International Terminal, November 25, 2011". Port Technology. Retrieved 2013-04-10.
  14. "A greener future for RTGs developed, June 7, 2012". Port Technology. Retrieved 2013-04-10.
  15. "GPA introduces North America's first ERTG, December 17, 2012". Port Technology. Retrieved 2013-04-15.
  16. "Konecranes to deliver three further RTGs to Luka Koper, January 23, 2012". Port Technology. Retrieved 2013-04-10.
  17. "Konecranes secures WA Sino Iron project contract, January 17, 2012". Supply chain review. Retrieved 2013-04-05.
  18. "Konecranes launches world's first hybrid reachstacker, January 14, 2013". Port Technology. Retrieved 2013-04-10.
  19. "Remote monitoring Konecranes-style, March 02, 2013". Port Technology. Archived from the original on September 18, 2013. Retrieved 2013-04-15.
  20. "Konecranes unveil Automated RTG system, July 04, 2013". Port Technology. 4 July 2013. Retrieved 2013-11-11.
  21. "Konecranes gets clever with emissions, November 19, 2013". Port Technology. Retrieved 2013-11-21.
  22. "Konecranes wins Indonesian record order, March 12, 2013". Port Strategy. Retrieved 2013-04-10.
  23. "Konecranes to deliver 20 Automated Stacking Cranes to Global Terminal in USA | Corporate press releases".
  24. "Konecranes and Terex to form leading global lifting and material handling solutions company through an all-stock merger of equals" . Retrieved 2016-08-02.
  25. "Terex and Konecranes to Combine in an All-Stock Merger | Business Wire". www.businesswire.com. 11 August 2015. Retrieved 2016-08-02.
  26. "Konecranes acquires Terex's Material Handling & Port Solutions business to create a focused global leader in Industrial Lifting & Port Solutions" . Retrieved 2016-08-02.
  27. "Terex To Sell MHPS To KoneCranes – Breakbulk Events & Media". 2016-06-06. Retrieved 2016-08-02.
  28. "Terex and Konecranes call off merger". 20 May 2016. Retrieved 2016-08-02.
  29. "Stig Gustavson väistyy Konecranesin hallituksen puheenjohtajan paikalta". Konecranes. Retrieved 2013-04-02.
  30. "Konecranes has completed the acquisition of MHPS business" . Retrieved 2017-01-04.
  31. "Konecranes completes acquisition of Terex MHPS" . Retrieved 2017-08-17.
  32. Räisänen, Perttu. "Kauppasodasta kärsivä Konecranes korvasi nosturien teräsvaijerit synteettisellä köydellä, jota yhtiössä on testattu jo vuosia". Tärkeimmät talousuutiset | Kauppalehti (in Finnish). Retrieved 2019-10-17.
  33. "Konecranes buys out Asia JV partner for 143 million euros". Reuters. 2019-12-05. Retrieved 2020-05-12.
  34. "Konecranes has completed the acquisition of MHE-Demag". www.pulpapernews.com (in Swedish). Retrieved 2020-05-12.
  35. "KONECRANES PLC: FINANCIAL STATEMENT RELEASE 2019 | Stock exchange releases". Konecranes. Retrieved 2020-05-12.
  36. "Cargotec and Konecranes to merge". vertikal.net. Retrieved 2020-10-01.
  37. "Konecranes Leadership Team". Konecranes. Retrieved 2021-03-09.
  38. "Konecranes At a Glance". Konecranes. Retrieved 2021-03-09.
  39. 1 2 3 "Konecranes – Business areas". Konecranes. Retrieved 2017-08-10.