Cargotec wins a significant material handling equipment frame agreement from U.S. Department of Defense
CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 13 OCTOBER 2011 AT 2 P.M. (EEST)
Cargotec has entered into a 5-year frame agreement with U.S. Department of Defense through its wholly-owned subsidiary Kalmar RT Center (KRTC). Total value of the 5-year agreement is estimated to be approximately USD 160 million (EUR 113 million). Under the agreement, Cargotec is estimated to supply approximately 1,890 light capability rough terrain forklifts (LCRTF) over the next 5 years. Cargotec expects to receive delivery orders from Tank-Automotive and Armament Command (TACOM) in Warren Michigan, USA, in each of those 5 years. Cargotec will book the order during the 5-year time frame as delivery orders are received.
Bryan Stephens, President of Kalmar RT Center said:
"We are excited that this contract continues our great working relationship with U.S. Department of Defense. This forklift was designed from the ground up for specifically challenging operations in rough terrain. We are committed to providing the same rugged reliability and durability for these LCRTF machines as in our well-know rough terrain container handler (RTCH). Receiving this landmark contract clearly demonstrates the customer's trust in our employees and our ability to provide the best material handling solutions to their operations throughout the world."
KRTC is also the sole manufacturer of the Kalmar rough terrain container handler (RTCH) for the U.S. Department of Defence and has delivered over a thousand of these vehicles. The LCRTF is an interoperable companion to the RTCH and was designed to provide customers with maximum savings in total ownership costs. The LCRTF vehicles will be manufactured by Kalmar RT Center (KRTC) in Cibolo, Texas. With this frame agreement, the customer plans to replace its existing fleets of 4- to 5-tonne forklifts.
Further information for the press:
Unto Ahtola, Executive Vice President, Industrial & Terminal, tel. +358 20 777 4114
Bryan K. Stephens, President, Kalmar RT Center, tel. +1 210 599 6541
Anne Westersund, Vice President Communications and Marketing, tel.: + 358 20 777 4181
Further information for investors:
Paula Liimatta, Investor Relations Manager, 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 2.6 billion in 2010 and it employs approximately 11,000 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com