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Wed August 21 2019

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Tadano completes Demag acquisition

1 Aug Japanese mobile crane manufacturer Tadano has completed its US$215m acquisition of the Demag Mobile Cranes business from Terex Corporation.

As a subsidiary of the Tadano Group – its second in Germany alongside Tadano Faun – the Demag mobile cranes business’ legal entity name will be changed to Tadano Demag GmbH. Tadano has recruited Jens Ennen from Manitowoc Grove’s German operations to take over as CEO of Tadano Demag GmbH.

The acquisition was announced in February (see our previous report here) as part of Terex's retreat from the crane industry.

While the Tadano and Demag product lines overlap in the smaller and mid-size all terrain crane segments, they are broadly complimentary. Tadano rough terrain cranes, truck cranes and cargo cranes are market leading in many parts of the world and it also has a strong line of telescopic crawler cranes (the former Mantis brand).  Its German-made all terrain cranes have also grown market share substantially in recent years, particularly from Grove and Terex Demag.

Demag, on the other hand, is the main competitor to Liebherr when it comes to mobile and crawler cranes in the 400-tonne-plus categories. Demag has eight lattice boom crawler crane models with lift capacities from 400 to 3,200 tonnes and 15 telescopic crane models up to 1,200 tonnes capacity.

Tadano said that the acquisition of Demag means that it now has one of the most complete ranges of cranes available from a single manufacturer.

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“The Tadano Group’s strategy is to become the global leader in the lifting equipment industry and the premier choice with our customers. The Demag Mobile Cranes acquisition is one vital step toward achieving that goal,” said Koichi Tadano, president and CEO of Tadano Ltd. “It expands our penetration into many markets throughout the world, adds lattice boom crawler cranes to our overall product line, and enhances the capacity range of our all terrain cranes. By working together, we can better respond to our customers’ needs and give them greater added value than ever before.”

He added: “Demag’s dedicated stakeholders, including customers, distributors and suppliers, among others, infuse the company with great value. As our journey with Demag begins, our most immediate goal is ensuring ‘business as usual’ for current Demag customers.”

Koichi Tadano has also written to all Demag customers, promising: “Demag’s transition into the Tadano Group will be seamless, and our customers can expect that they will be able to carry out business as usual – right from the very start. For the most part you will continue to work with the same Demag sales, service and parts contacts as you have up until now. Only the last part of their respective e-mail addresses will change from ‘@terex.com’ to ‘@tadano.com’.”

On completion of the sale, Terex Cranes president Steve Filipov has left Terex after 25 years with the company.

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