ACE to Establish JV with Kato for Manufacturing Large and Medium Cranes

Action Construction Equipment Ltd. (ACE) has announced that it is in discussions with KATO WORKS CO LTD., a renowned Japanese global construction equipment manufacturer, to establish a joint venture (JV) in India.

KATO specializes in manufacturing mobile cranes, excavators, and other heavy machinery. The two companies are working towards finalizing a formal contract as soon as they agree on the terms.

The proposed JV aims to produce medium and large-sized cranes, including truck cranes, crawler cranes, and rough terrain cranes, to cater to the growing Indian market. Additionally, the JV plans to leverage advanced technology to develop and introduce a wide range of value-added products for export to other countries from India.

ACE and KATO are committed to laying a strong business foundation through this venture, which aligns with their medium- to long-term growth strategy. The formal establishment of the JV will be announced once all details are finalized the statement read.

To read the full announcement click here.

Crane Industry in India 

The Crane industry in India is still dominated by players like Kobelco, Konecranes, Liebherr, Ace, Escorts, and Sany are the leading firms in the industry. The Cranes that are leading the market are Mobile Cranes, Tower Cranes, and Crawler Cranes.

The industry will grow at a CAGR of 6.79% according to the Moradar intelligence report the current valuation of the market stands at USD 1.39 billion in 2024 and in 2029 will reach a value of  USD 1.92.

The market growth is driven by government projects as the current government is hell-bent on making infrastructure spending as a major source of growth with ripple effects on the macro economy of the country.    

To know the full industry analysis visit the Mordor Intelligence Group. 

ACE

Action Construction Equipment Limited (ACE) Established in 1995 in Faridabad, Haryana, is India's top manufacturer of material handling and construction equipment. With state-of-the-art production facilities capable of producing 12,000 construction equipment units and 9,000 tractors annually.

 ACE dominates the Mobile Cranes and Tower Cranes market. Its innovative product portfolio includes Mobile/Fixed Tower Cranes, Crawler Cranes, Truck Mounted Cranes, Backhoe Loaders, Vibratory Rollers, Forklifts, Tractors, and Harvesters. ACE's advanced technology and strong presence in major infrastructure and industrial projects solidify its position as an industry leader.

Kato

Founded in 1895 and established as KATO WORKS CO., LTD. in 1935, Kato has become a leading name in the construction machinery industry. With a capital of JPY 2,935,890,000, the company employs 1,009 people as of March 2023.

Kato specializes in manufacturing and selling mobile cranes, construction equipment like hydraulic excavators, and industrial equipment such as vacuum suction cleaners and street sweepers. The company operates several key factories, including the Ibaraki Plant in Bando-shi, the Gunma Plant in Ota-shi, and the Bando Plant, also in Ota-shi, Japan. 

The firm over its 128-year history has established several foreign joint ventures to expand its global footprint. Notable subsidiaries include Kato Works (China) Ltd., Kato Sce (Xiamen) Construction Machinery Co., Ltd. In China, Kato Europe B.V. In Europe, and Kato Imer S.P.A. Additionally, Kato has a Presence in North America through Icomac, Inc.

Read more about the company profile.