Wheeled loader alliance

31 October 2008

Japanese manufacturers Hitachi Construction Machinery and Kawasaki Heavy Industries have announced plans to form a manufacturing alliance for wheeled loaders. The new company, which Hitachi will have the option to fully acquire in 2012 has been set up to meet the demands of the Stage IIIB/Tier 4 engine emission regulations that come into force in 2011.

The deal will see Kawasaki spin-off its wheeled loader business into a new subsidiary on 1 April next year. Hitachi will then take a 34% stake in the company at some point in the 2009 Fiscal year, starting on 1 April. Hitachi has a call option to fully acquire the company three years after it makes its initial investment.

Wheeled loader manufacturer TCM, which is 50.1% owned by Hitachi will also participate in the collaboration.

A joint statement said, "The three companies will combine their respective technologies and know-how to jointly conduct research and development of new models of wheeled loaders that will comply with the emission control regulations. An arrangement will be made so that the three companies will have divided manufacturing responsibilities and will supply to one another such jointly-developed products."

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