Konecranes Pursues Possible Merger

Konecranes, Hyvinkää, Finland, has said it remains in the hunt for a company to merge with after Demag Cranes AG, Düsseldorf, Germany, rejected its offer to discuss a possible combination.

"As stated in the fourth quarter release, the management of Demag Cranes has no interest in engaging in any dialogue regarding such a potential combination," said Mikael Wegmuller, vice president of Konecranes. "Under these circumstances, we will not pursue the matter."

Konecranes believes the market is fragmented and that the whole industry needs to consolidate, at least in Europe. "There is a need for consolidation in the crane industry to create critical mass and scale to enable continued competitiveness," said Wegmuller.

"Our vision is to be the undisputed market leader in the lifting industry, and a benchmark for business performance and customer service," Wegmuller continued. "Our goal is a 30% market share of the world market and one of our key strategies is to increase our global footprint. Footprint expansion is done by organic growth and acquisitions.

"During 2010 we bought several smaller service companies and a few larger equipment companies. We will continue this strategy with the emphasis on emerging markets. Our strategy of footprint expansion covers all regions, including North America, but our focus is on the emerging markets."