Cargotec unloads 49pc share in China joint venture
HELSINKI, Finland-headquartered Cargotec has completed the sale of its share of the joint venture Rainbow-Cargotec Industries Co Ltd (RCI) in China
HELSINKI, Finland-headquartered Cargotec has completed the sale of its share of the joint venture Rainbow-Cargotec Industries Co Ltd (RCI) in China.
As part of the agreement, Cargotec acquired certain operations and assets of the joint venture from Jiangsu Rainbow Heavy Industries Co Ltd (RHI), and approximately 160 employees have moved over from RCI to Kalmar.
Cargotec announced its plans on May 11, 2020, to sell its 49 per cent share of the joint venture to the other owner RHI, which now owns 100 per cent of the former joint venture. The new name of the company is Rainbow Industries Co Ltd (RIC).
RIC will continue as Cargotec's subcontractor and provide assembly services for Cargotec's business areas Kalmar and MacGregor at the factory in Taicang, China.
The change aims to simplify Cargotec's global supply chain operations. 'Simplification is needed mainly because the number of complex automation projects has been growing in the past couple of years. The arrangement also supports the asset light balance sheet structure,' Cargotec said in a statement.