Rainbow-Cargotec Industries Co Ltd (RCI) celebrates the ground breaking for its new facility in China

CARGOTEC CORPORATION, PRESS RELEASE, 18 JUNE 2012 AT 7.30 A.M. (EEST)

Rainbow-Cargotec Industries Co Ltd (RCI) is a joint venture of Cargotec and Jiangsu Rainbow Heavy Industries Co., Ltd. (RHI) in China. The companies celebrate the ground breaking for RCI's new facility in Taicang Jiangsu province, China today.

The ground breaking ceremony for the new facility is hosted by Cargotec's President and CEO Mr. Mikael Mäkinen and President of RHI, General Manager of RCI Mr. Wu Jian. His Excellency Mr. Huang Xing, Ambassador of China to Finland and His Excellency Mr. Lars Backström, Ambassador of Finland to China are invited as the guests of honour in the event.

"This ground breaking in Taicang demonstrates RHI's and Cargotec's commitment in combining our forces for future success.  We will create new, globally competitive solutions that will certainly benefit our customers. The new facility will have excellent waterway connections to our markets by the Yangtze River and it will increase Cargotec's delivery capacity," says Cargotec's President and CEO Mikael Mäkinen.

RCI will provide leading heavy crane solutions globally and grasp growth opportunities in the Chinese and global markets with a strong local presence, knowledge and experience. The joint venture will focus on ship-to-shore cranes, rubber-tyred gantry cranes, rail mounted gantry cranes and other heavy crane products.

"We have also been very pleased with the good cooperation we have had with the local Taicang government. RCI is expected to bring many employment opportunities in the area and it will also bring many indirect employment effects," says President of RHI, General Manager of RCI Mr. Wu Jian.

The new facility will be at the forefront of more sustainable manufacturing in China in the industry. Energy and water consumption and emissions, for example, have been carefully considered and minimised. The new RCI site occupies 30 hectares of industrial land and it will have a gross floor area of over 265,000 square meters. Constructions will complete in two years.

RCI joint venture supports Cargotec's strategy of a strong local presence in Asia. Cargotec is evaluating the listing of Cargotec Marine on the Singapore Exchange. The listing of Cargotec Marine would strengthen its business presence in Asia and secure profitable growth. Over one third of Cargotec's sales comes from Asia-Pacific region and Cargotec employs approximately 2,500 persons in nine countries in the region. The company's Asian production units are located in China, India, Korea, Malaysia and Singapore. Part of manufacturing has been outsourced to partner plants, which are mainly located in Asia.   

For further information please contact:

Mikael Mäkinen, President and CEO, Cargotec, tel. +358 20 777 4101

Wu Jian, President of RHI, General Manager of RCI, tel. +86 513 8010 0206

Anne Westersund, Vice President Communications and Marketing, tel. +358 20 777 4460

More information for the investors:

Paula Liimatta, Investor Relations Director, tel. +358 20 777 4084

Cargotec improves the efficiency of cargo flows on land and at sea - wherever cargo is on the move. Cargotec's daughter brands, Hiab, Kalmar and MacGregor are recognised leaders in cargo and load handling solutions around the world. Cargotec's global network is positioned close to customers and offers extensive services that ensure the continuous, reliable and sustainable performance of equipment. Cargotec's sales totalled EUR 3.1 billion in 2011 and it employs approximately 10,500 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com

Jiangsu Rainbow Heavy Industries Company Limited is a fast growing heavy equipment provider in China. The company's main products include marine equipment, lifting equipment, offshore engineering solutions and city parking systems, etc. Rainbow's shares are quoted on the Shenzhen Stock Exchange under symbol 002483:SZ.  www.jiangsurhi.com

Rainbow-Cargotec Industries Co Ltd (RCI) provides leading heavy crane solutions globally. The company specializes in ship-to-shore cranes, rubber-tyred gantry cranes, rail mounted gantry cranes and marine specialty cranes.  RCI is a joint venture of Cargotec and Jiangsu Rainbow Heavy Industries Co., Ltd. www.rainbowcargotec.com