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Fri March 05 2021

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CNH to make Sumitomo excavators in alliance extension

30 Apr 14 CNH Industrial and Sumitomo Construction Machinery of Japan have renewed and extended their licensing agreement for crawler excavators.

Sumitomo has supplied CNH Industrial’s Case and New Holland global distribution network with excavators ranging from 7 to 80 tonnes since 1992. The new technology license and component supply agreement sees CNH Industrial manufacturing Sumitomo-designed crawler excavators ranging from 13 to 35 tonnes at designated plants within its manufacturing network. CNH plans to begin production of the new localised models in mid-2016.

The companies said that this next step in their alliance would further strengthen the partnership between the two companies.

The move comes after a second CNH alliance with another Japanese company – Kobelco – came to an end in December 2012.

“With this new agreement CNH Industrial has completed the transition from its previous dual source excavator strategy to a single global partner,” said Richard Tobin, CNH Industrial CEO and brand president of Case and New Holland Construction.

“This new licensing agreement builds on our successful long-term relationship with Sumitomo. It confirms CNH Industrial’s intention to invest and leverage the most advanced specialist players in the industry in order to provide customers around the world with construction equipment that consistently delivers performance and productivity.”

Sumitomo Construction Machinery president Mikio Ide said: “Sumitomo and CNH Industrial’s relationship will reach a new stage as both companies pursue synergies through this agreement. By maintaining and building on the strong relationship between the two companies, we will aim to grow our market share in the construction machinery sector.”

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