Manitowoc and Kobelco to end OEM agreement
The global alliance between the crane manufacturers began in November 2003 and will end on November 9, 2018
Crane manufacturers The Manitowoc Company and Kobelco Construction Machinery will end their OEM supply agreement in November 2018. Currently, Kobelco supplies Manitowoc-branded lattice-boom crawler crane models with lift capacities under 150 tons to the worldwide Manitowoc distribution network, and Manitowoc supplies Kobelco-branded all-terrain crane models for marketing in Japan.
The global alliance began in November 2003 and will end on November 9, 2018. Kobelco will continue to support Manitowoc and its customers, and Manitowoc will continue to support Kobelco and its customers, with service parts for a period of 10 years.
With the market environment changing over the past few years, The Manitowoc Company and Kobelco Construction Machinery have been re-examining the agreement and discussing the future of their global alliance. Looking ahead at future market conditions, the companies have mutually decided to operate their businesses on their own.
Barry Pennypacker, president and CEO, The Manitowoc Company, said, “After nearly 15 years, we have agreed to pursue separate ways developing our own products in the smaller capacity cranes to serve our respective customers. Kobelco has been an excellent partner, providing our customers with a high standard of product quality and reliability. With the implementation of The Manitowoc Way, we will continue to deliver new products on time, ensuring that our customers continue to have the right product offerings."
Kazuhide Naraki, president and CEO, Kobelco Construction Machinery, said: “Manitowoc has an outstanding reputation around the world and offered a strong distribution network in regions it serves globally. I can say our partnership was very successful in bringing to market reliable products which have a high standard of quality and safety. We look forward to a new chapter in growing our businesses."