Mitsubishi Electric and Konecranes Strengthen Partnership Through Hoist Business Deal

What happened:

Mitsubishi Electric will sell a majority stake in its subsidiary. As a result of the deal, Konecranes will be a 70% major shareholder, with Mitsubishi Electric holding a 30% stake. The subsidiary in Fukuoka has been developing and manufacturing hoists and geared motors, mainly for the Japanese market. The transaction is supposed to close this fiscal year, contingent upon regulatory approvals.

Why it matters:

The combination of Mitsubishi Electric’s extensive experience in the development of hoists and geared motors and in Konecranes’ wide network of material handling equipment manufacturers across the world is expected to enhance the joint company’s ability to serve its global customers. 

While Mitsubishi Electric is a strong entity in Japan, Konecranes is present in over 50 countries and offers industrial lifting, maintenance and modernization services. Through the joint venture, Konecranes will have access to new markets for sales of its products. Additionally, being acquired by Mitsubishi Electric will allow Konecranes to boost its technology and product capabilities in Japan from its operations abroad. 

Industry context:

Today, manufacturers are searching for more and more advanced and interconnected solutions in the sphere of material handling. The material handling industry is changing, resulting in the proliferation of more smart and connected systems available on the market. The businesses are already taking it up a notch by providing equipment sales along with lifecycle services, digital monitoring, predictive maintenance and much more.

Mitsubishi Electric and Konecranes will build on their expertise, sales distribution channels and technologies to enhance their presence in an increasingly competitive international market.

The industry observes that the customers are becoming more focused on integrated solutions that involve both the reliable equipment and other digital services and long-term support. The partnership should enable both companies to meet these changing needs and to continue to contribute to the growth of industrial lifting and material handling solutions.