December 23, 2015 – Kobe Steel, Ltd. and its wholly owned subsidiaries, Kobelco Construction Machinery Co., Ltd. and Kobelco Cranes Co., Ltd., have announced plans to merge the two businesses under Kobelco Construction Machinery Co., Ltd. effective April 1, 2016.
The Kobe Steel Group decided to merge the two companies in an effort to further strengthen its business foundation and accelerate global development in relation to the construction equipment business. The subsidiaries were originally split into two separate companies in 2004, with both companies specializing in their respective fields in many countries around the world. This merger is anticipated to improve business efficiency, strengthen product development capabilities and bolster global development. It will also enable Kobe Steel to pursue new possibilities from the synergy derived from the accumulated technologies of its excavators and cranes.
According to Kobe Steel in Japan, the merger of overseas Kobelco subsidiary Construction Machinery and Crane locations will be considered on a case by case basis while weighing the benefits to each market within 2016. “Here at Kobelco Construction Machinery USA, we are considering the best approach to strengthen the support of our North America dealers and customers,” says Pete Morita, president of KOBELCO Construction Machinery USA. “We are very excited about the opportunities this consolidation provides.”
After the merger, Kobelco Construction Machinery Co., Ltd. will represent a combined sales of $3.15 billion USD with over 7,600 employees.
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