RCI joint venture rearrangement: What this means for our customers
By rearranging our operations in China, we are simplifying the logistics chain and speeding our product development. For Kalmar's customers, this will mean better service and a single point of contact for all deliveries.
Cargotec recently announced a change in the ownership structure of our joint venture in China. In 2012, we formed the joint venture Rainbow-Cargotec Industries Co., Ltd (RCI) with Jiangsu Rainbow Heavy Industries Co., Ltd. (RHI), and since that time, RCI has successfully manufactured port and offshore cranes for us in Taicang, China.
We have now finalised the agreement and Cargotec has sold its 49% ownership in RCI to the joint venture partner, simultaneously acquiring certain operations and assets from RHI. As a result of the change, our partner’s name changed to Rainbow Industries Co. Ltd. (RIC) and we gained some 160 + new colleagues in China and Finland.
Single point of contact
So, what is this change all about? Put simply, the world has changed, and our business needs to change along with it. Over the last several years, automation has become an increasingly important part of terminal operations, and the reality is that large-scale terminal automation projects are very hard to manage with a joint venture model.
Terminal automation requires a unified technical vision as well as seamless integration across all parts of the production chain. Thanks to the new operating concept, the roles and responsibilities between Kalmar and our partner in China will now be significantly clearer. RIC will continue to serve as our OEM supplier, and will be responsible for product assembly and related component purchases according to Kalmar's specifications. Kalmar will have full responsibility for the customer relationship and will serve as the single point of contact on all deliveries.
Kalmar will serve as your single point of contact on all deliveries.
The change in ownership arrangements will not impact our contractual commitments towards our customers, but will bring numerous gains in the form of harmonised delivery models for all types of equipment, as well as easier communication.
Simplicity, efficiency, expertise
For our customers, the benefits of this rearrangement are threefold. First, simplicity. From now on, Kalmar will take care of all on-site activities and will have sole responsibility for the entire delivery, including deployment, engineering, handover and on-site support.
Secondly, the change will boost the efficiency of our research and development, enabling us to improve our products more efficiently. With automation solutions and equipment systems developed fully in-house, we can do more, and do it faster and better.
Finally, the rearrangement will provide a major boost for our engineering know-how. As part of the deal, we have acquired a portfolio of key intellectual property rights as well as a fantastic team of over 150 professionals who will strengthen our operations in China. We are also delighted to welcome the new team members from RCI who have joined us in Finland.
Change is a constant
Collaboration is the key to success in today's global world, but all business relationships must evolve over time. Sometimes we need a new, simpler approach to focus on what is essential and to serve our customers better. This change in ownership structure has not come about overnight, as it is something that we have worked on with our partner RHI for over two years now.
At Kalmar, we believe that terminal automation is the most important megatrend that will shape the cargo handling industry in the next few years, and we need to do all that we can to boost our capability to deliver end-to-end automation solutions to our customers. This rearrangement is part of that ongoing journey, and I look forward to taking the next steps together with our partners RIC and RHI as well as with you – our customers.
President Kalmar Automation Solutions