ACE and KATO Join Forces to Manufacture High-Capacity Cranes in India

What happened:

The company, Action Construction Equipment (ACE) has entered into a tie-up with Japan’s KATO Works to manufacture heavy duty cranes in India. The new company has been named ACE KATO Pvt. Ltd. and will address the demand for truck, crawler and rough-terrain cranes, in India and abroad. To support the initiative, the partners have set up an 11-acre manufacturing facility in Haryana with a planned investment of around ₹200 crore.  

Why it matters:

The demand for heavy lifting equipment keeps on increasing in India with the continuous investment in infrastructure, transportation, energy, mining and industrial projects. The country has a robust footprint in the construction equipment manufacturing sector, but high capacity cranes have been very reliant on global technology and imports.

Industry context:

The construction machinery industry in India has been growing in a positive fashion due to the investments made in the infrastructure of the country.  The industry watchers believe that the move is part of a trend of world’s leading equipment manufacturers working with the Indian businesses to create products near the end markets and develop supply-chain resilience. 

The collaboration will secure a foothold in the high capacity crane market for ACE and provide KATO with a manufacturing location in one of the most dynamic infrastructure markets in the world. A successful venture will help India to emerge as a bigger player in the international manufacturing and export of cranes and will aid in the ‘Make in India’ initiatives of the Government of India.