Cargotec Breaks Through With Chinese RTG Order

Cargotec's commitment to continue growing its share of the keenly competitive Chinese port equipment market has been confirmed by a new order from Cosco Pacific subsidiary Jinjiang Pacific Ports Development (JPPDC).

JPPDC, which currently operates a two berth facility in Weitou Port in Fujian Province, has contracted the company to supply two Kalmar E-One2 type rubber-tyred cranes, which are scheduled for delivery in May 2012. The all-electric RTGs will be able to stack containers one-over-five high, span six container rows plus a roadway and have a lift capacity of 41 tons.

Cosco Pacific is in the process of 2nd phase investment to expand the container yard, in order to increase the throughput of the terminal, and the RTG order has been made to support this infrastructure expansion project. Container throughput at the terminal is increasing rapidly and is expected to reach 0.4 million TEU next year, and it is going to achieve 0.8 mTEU in 2015 after the 2nd phase expansion to be put into operation.

Cargotec's Dennis Lue, Director of Port Cranes Asia, says: While China is a key market for us, this is the first RTG order that we have secured in this country for around five years. Our success in winning the contract against tough competition from both Chinese and overseas manufacturers shows how increasingly competitive our RTGs are becoming as a result of the efforts we have made recently to deliver forward looking technology at a reasonable cost.

JPPDC already has experience of running Cargotec equipment, having a number of Kalmar reachstackers within its landside operations. Mr Lue adds: From our regional office in Hong Kong we have built up good relations with this customer and the experience of running these reachstackers has reinforced our reputation for quality and reliability. Other factors which encouraged JPPDC to choose Kalmar RTGs included the low fuel consumption, low maintenance E-One2 design and the low overall lifetime running costs of the machines.

Cosco Pacific, which controls an 80% stake in JPPDC, is ranked by Drewry Shipping Consultants as the fifth largest container terminal operator in the world. As well as having a network of domestic container terminal facilities in the Bohai Rim, Yangtze River Delta, Pearl River Delta and the southeast coast regions of China, Cosco Pacific has overseas investments in Singapore, Antwerp, Port Said and Piraeus. The company has expanded from operating just two berths in 1995 to 145 berths at the end of 2010, and these facilities had a combined throughput of around 48.5 million TEU last year.

Cargotec has built up a substantial presence in China in recent years, making a major investment in its Lingang assembly plant near Shanghai. The factory, strategically located close to the Yang Shan port development, has delivered a range of equipment to Chinese ports, including FLTs, empty handlers, reachstackers, terminal tractors and RTGs. More recently Cargotec has announced that it is planning to establish a joint venture with Jiangsu Rainbow Heavy Industries Co., Ltd. (RHI) in China. The joint venture is expected to further improve Cargotec's competitiveness in China as well as in global markets.

For further information, please contact:

Dennis Lue, Director, Port Cranes Asia, tel. +86 21 6118 4868

Pauliina Koivunen, Public Relations Director, tel. +358 20 777 4205

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