Tadano’s Demag integration strategy

Japanese crane manufacturer Tadano has released details regarding how it is integrating the Demag mobile crane brand into its company structure five months after its purchase from Terex Corporation.

Tadano is retaining the Demag name as a stand-alone brand, saying that the Demag models help fill gaps in its existing all terrain line-up and adds lattice boom crawler cranes to its portfolio. This, it said, has opened the door to increased flexibility in it being able to offer larger equipment package deals.

Internally, following the acquisition, Tadano has focused on developing global best practices determined via teams comprising company employees from around the world.

With the aim of increasing co-ordination between Tadano’s two German manufacturing facilities, Tadano Faun and Tadano Demag, it is forming a parent company with shared departments, including: engineering; sales; marketing; and product management. A combined German parts organisation will also be set up with the aim of capitalising synergies between the two German factories. Tadano hopes this will further its advance parts availability and support capabilities globally.

Tadano said initial steps taken to integrate its European service organisations are already improving its global service capabilities, resulting in faster customer response times. Service team members are being cross trained on both brands. This, Tadano said, will increase the number of technicians available.

The company said it is also refining the Tadano and Demag sales and distribution networks on a region by region basis. It believes this will give Tadano and Demag the opportunity to jointly develop new markets and assist with global expansion efforts.

Tadano added that it is significantly investing in both of its German manufacturing facilities to increase machine production.

“We are learning from each other and working together to build and strengthen our manufacturing experience and knowledge,” commented Jens Ennen, Tadano Demag CEO. “This will help us decrease machine throughput times and deliver cranes faster to our customers. This effort is key to reaching our goal of becoming the leading global lifting equipment supplier.”