Cargotec Acquires Estonian Balti ES
Cargotec Corporation has made an agreement to acquire Balti ES, a steel structure and component manufacturer based in Narva, Estonia. Balti ES is today owned by Odense Steel Shipyard Ltd., a subsidiary of the A.P. Moller-Mærsk Group. The company supports the growing component needs of both Cargotec's Hiab and Kalmar business areas. The parties have agreed not to disclose the transaction value.
Cargotec has decided to strengthen its European supply base and cost competitiveness. After thorough evaluation acquiring Balti ES became the best alternative when developing competitive component sourcing. The strong industrial tradition of Balti ES and its skilled workforce were major criterias in this decision. The intention is to further improve Balti ES' productivity and significantly increase capacity for Cargotec components.
"Balti ES offers us a good base to build on our future component and assembly needs. The combination of low-cost manufacturing, Cargotec processes, and a more focused Balti ES will result in an effective sourcing partner for our growing needs. The location of Balti ES is logistically a good match for our European units" states Pekka Vartiainen, President of Cargotec's Hiab business area.
Cargotec has in recent years been one of Balti ES' key customers. Balti ES employs approximately 600 people and had net sales of approximately EUR 14 million in 2006. Balti ES' current Managing Director Vladimir Nazarenko will continue to be responsible for the operations and sees this development as next stage in developing Balti ES' industrial capabilities.
Senior Executive Vice President and CFO
SVP, Investor Relations and Communications
For further information, please contact:
Pekka Vartiainen, President, Hiab, tel. +358 204 55 4264
Eeva Mäkelä, SVP, Investor Relations and Communications, tel. +358 204 55 4281
Cargotec is the world's leading provider of cargo handling solutions whose products are used in the different stages of material flow in ships, ports, terminals, distribution centers and local transportation. Cargotec Corporation's brands, Hiab, Kalmar and MacGREGOR, are market leaders in their fields and well-known among customers all over the world. Cargotec's net sales are EUR 2.7 billion. The company employs approximately 9,000 people and operates in close to 160 countries. Cargotec's class B shares are quoted on the Helsinki Stock Exchange.