Material handling group MHE-Demag is expanding its footprint in Asia-Pacific with the acquisition of its sister company Demag Cranes & Components (DCC) Australia.
The move will see the Australian industrial crane supplier strengthened further, with several additional material handling product ranges to be introduced.
DCC Australia, a major player in the industrial cranes and related services market in Australia for more than 50 years, will rebrand to MHE-Demag Australia.
DCC Australia and MHE-Demag already enjoy a close relationship through the Terex Group, former owners of DCC Australia and the joint venture partner for MHE-Demag.
With the acquisition the two organisations now move even closer together under one roof.
Mr Per Magnusson, Regional Managing Director of MHE-Demag welcomed his new colleagues into the MHE-Demag family.
“This is naturally an interesting step forward as it adds a sizeable business volume to our group as well as a new market to our portfolio, Mr Magnusson said. “It opens up for interesting and competitive business set-ups and also adds a highly competent organisation into our fold, from which we can learn many good practices."
DCC Australia currently enjoys a large installed base, strong brand recognition, and a solid reputation as the market leader in quality material handling products.
MHE-Demag Australia will make a significant contribution to the Group’s projected sales of more than MSGD 300. More than 130 employees will be added to the currently 1,500 strong MHE-Demag Group workforce.
With the addition of MHE-Demag Australia’s branches the Group now serves their customers from over 60 locations throughout the Asia-Pacific region. The manufacturing facilities in Sydney, Perth and Brisbane add to the total of eleven factories in eight countries – from Australia over Indonesia, Singapore and Malaysia, through Thailand, Vietnam and the Philippines all the way north to Taiwan.
MHE-Demag Australia will continue to provide the Australian market with high quality standard and engineered overhead cranes, chain hoists, light rail crane systems, drives and crane components from TEREX MHPS coupled with an extensive service network, a full range of spare parts and comprehensive refurbishment and re-certification products.
The extended range of material handling products from the MHE-Demag range opens up new market opportunities for MHE-Demag Australia.
“We are looking forward to the high quality ranges of lift trucks and loading bay equipment for warehouses, equipment for safe working at height and even automated car parking systems. The addition of these products for such applications means we can now greatly improve our offering to the domestic market,” said Rowland Hudd, National Sales & Marketing Manager of MHE-Demag Australia. “Whilst recent years have seen a stabilising of the domestic economy in some areas, particularly manufacturing, the IPD products in the MHE-Demag range allow us to support the projected growth in the construction and logistic sectors, he said.
“This is a win-win situation for MHE-Demag Australia and the Australian market. The new product ranges will be rolled out gradually starting with warehousing equipment.”
Mr Hudd said while key components of the industrial crane ranges will continue to be imported from Germany, the prime manufacturing facilities for the Australian market will remain in Sydney, Perth and Brisbane.
“We will not depart from any proven ways here,” said Klaus Schilling, the new Managing Director of MHE-Demag Australia. “In fact, we are determined to continue to invest to improve our Australian manufacturing facilities even further. At MHE-Demag we always try to be as close as possible to the customer. Our strong presence on the ground is a big part of our success here.”
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