Cargotec China Venture Targets $912 Million Annual Sales

Cargotec (CGCBV) Oyj, the world’s biggest maker of container-lifting gear, said a new China venture may post annual sales of as much as 5.8 billion yuan ($912 million) as growing global trade spurs demand for port equipment.

The venture may reach that target in six years, Chief Executive Officer and President Mikael Makinen told reporters in Shanghai today. The company and partner Jiangsu Rainbow Heavy Industries Co. (002483) today started work on a two-year project to build the venture’s main facility in Taicang, near Shanghai.

Cargotec is investing 30 million euros ($38 million) of equity into the new business, which will make port-handling systems, cranes and other heavy equipment, as manufacturing in China spurs sea-cargo shipments to the U.S. and Europe. Container volumes at Chinese harbors have risen more than 8 percent from a year earlier for the last four months, according to Ministry of Transport data.

To contact Bloomberg News staff for this story: Alexandra Ho in Shanghai at aho113@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.