Kobelco Construction Machinery and Kobelco Cranes to merge

Kobe Steel, Ltd. and its wholly owned subsidiaries, Kobelco Construction Machinery Co., Ltd. and Kobelco Cranes Co., Ltd., reached a decision today to merge the businesses of Kobelco Construction Machinery and Kobelco Cranes together effective April 1, 2016.

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The Kobe Steel Group’s construction equipment business saw Kobelco Construction Machinery spinning off the crane business in 2004. Following the establishment of Kobelco Cranes, these two companies have specialized in their respective fields in Japan and overseas.

Under its medium-term business plan launched in May 2013 covering fiscal years 2013 to 2015, the Kobe Steel Group said it would strategically expand its machinery-related businesses. The Kobe Steel Group has decided to merge the two companies together as it considers it necessary to further strengthen its business foundation and accelerate global development in relation to the construction equipment business.

This merger is anticipated to improve business efficiency, strengthen product development capabilities, and bolster global development. It will also enable Kobe Steel to pursue new possibilities from the synergy derived from the accumulated technologies of its excavators and cranes. Considerations will continue with regard to the consolidation of domestic and overseas locations.

The new company aims to take a new leap forward as a comprehensive construction machinery manufacturer that combines the two product menus of excavators and cranes.