Konecranes expands its footprint in Saudi Arabia

In June 2011, Konecranes acquired 100 percent of the Saudi Arabian crane manufacturer Saudi Cranes & Steel Works Factory Company Limited (“Saudi Cranes”). Saudi Cranes is headquartered in Al Jubail Industrial City and the company has approximately 100 employees. Saudi Cranes’ core business is designing, manufacturing and selling industrial cranes. The company previously had a license agreement with Konecranes. Saudi Cranes net sales in 2010 were approximately 17 MEUR. The value of the acquisition is not disclosed.

Saudi Cranes enjoys an excellent reputation in Saudi Arabia. Its customers are mainly in the oil, gas & petrochemical industries, steel plants, railways, workshops, power plants and other process industries in the whole of the Arabian Peninsula.

As a result of strong growth in recent years, Saudi Cranes’ manufacturing plant was expanded at the end of 2008 in accordance with specifications from Konecranes and is now well-equipped to serve Saudi Cranes’ customers.

“The acquisition of Saudi Cranes will give Konecranes the opportunity to strengthen its position in the important Saudi Arabian market, which is witnessing significant growth in major industries,” says Pierre Boyer, Senior Vice President, Konecranes. “Thousands of overhead cranes have been sold in the Kingdom of Saudi Arabia to date. These form an excellent base for establishing and developing services to the Saudi Arabian market.”

Saudi Cranes’ previous owner is Sheikh Saad Al Issa. The company’s current management will continue working in the company.

Saudi Cranes & Steel Works Factory Company Limited will be consolidated into Konecranes’ books from June 2011.

More information:
Press
Pierre Boyer, Senior Vice President, West Europe, Middle East, Africa, Konecranes
E-mail: pierre.boyer@konecranes.comor phone +358 20 427 3312

Analysts and investors:
Miikka Kinnunen, Director, Investor Relations, Konecranes
E-mail: miikka.kinnunen@konecranes.com or phone +358 20 427 2050

This press release is available at our website www.konecranes.com

Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity-enhancing lifting solutions and services for lifting equipment of every make. In 2010, Group sales totaled EUR 1,546 million. The Group has 10,000 employees, at 578 locations in 46 countries. Konecranes is listed on the NASDAQ OMX Helsinki (symbol: KCR1V).