VOLUME 2.12 OUTLOOK · machinery OUTLOOK EUROPE ® Peter Dahlsten, senior vice president Ramirent...

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The content of this report represents our interpretation and analysis of inforrmation generally available to the public or released by responsible individuals in the subject companies, but is not guaranteed as to accuracy or completeness. It does not contain material provided by our clients. Individual companies reported on and analyzed by Manfredi & Associates may be clients of this and or other Manfredi & Associates services. This information is not furnished in connection with a sale or offer to sell securities or in connection with the solicitation of an offer to buy securities.

Copyright © Manfredi & Associates ISSN 1464-1313

EUROPE

• LavendonGroupCombinesUKRental Businesses

• AtlasCopcoToDevelopHigh-SpeedGeothermalDrillingTechnology

• LiugongAndCumminsAnnounce Joint Venture Partnership To Build Engines In China

• ConstructionIndustryUnlikelytoReturnToGrowthUntil2014

• CaterpillarCompletesAcquisition of MWM

• WackerNeusonRemainsOnAGrowthPathInThe3rdQuarterOf2011

• JCBSaysIndiaGrowthToDeclineTo15%InFy2012

• Komatsu&RioTintoEnterIntoAgreementFor150TruckDeployment

• KomatsuCEOLooksforAcquisitionTargetsinU.S.,Europe

• A-PlantFirstHalfRevenuesRise14%AndOperatingProfitsClimb26%

• ZeppelinToMakeHugeFleetInvestments In 2012

ISSUE2.12

HEARD IN THE DIRTTM

Ramirent Purchases TLMFinland-based Ramirent has acquired the Swedish rental company TLM -Tannefors Lift- och Maskinuthyrning –and its three locations in Linköping, Norrköping and Motala in the Östergötland region of central Sweden. TLM has annual revenues of approximately €8.8 million through its four subsidiaries – TLM i Linköping, TLM i Norrköping, TLM i Motala and TLM Ställningar (TLM Scaffolding). Founded in Linköping in 1977, TLM started out with scissor lifts and scaffold towers and has always specialized in the access market, including aerial lifts and scaffolding, but also offers cabins and light equipment. The company’s fleet includes a wide range of access products with scissor lifts from Skyjack, Genie and UpRight, booms from JLG, Niftylift and Manitou among others, trailer and spider lifts from Dinolift, Denka, Omme and Falck Schmidt and spider cranes from Maeda. It currently employs 35 staff, all of whom will remain with the business as part of Ramirent.

Ramirent chief executive Magnus Rosén said: “The acquisition is in line with the group strategy of strengthening our geographical footprint and complementing our offering to further diversify our customer base. TLM will strengthen Ramirent’s position in the local market among small and medium-sized construction companies through a good light equipment business, a modern lift fleet as well as a strong scaffolding business.”

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VOLUME 2.12

© Manfredi & Associates, Inc issue 2 20122

machinery OUTLOOK EUROPE ®

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CONTENTSSpeedyExpandsFleetwithOrderWorthOver€3.85million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

KiloutoubuysLyonrentalcompanyTop’Loc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

LavendonGroupCombinesUKRentalBusinesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

AshteadRaisesProfitExpectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

AB Volvo To Elect New Chairman of the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

NewHollandConstructionFocusesonCompactProducts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

DalyPlantHireExpandsFleetofVolvoHaulers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

AtlasCopcoToDevelopHigh-SpeedGeothermalDrillingTechnology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

DanaandBoschRexrothFinalizeJVForOff-HighwayTransmissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

RamirentSeniorVPKariAulasmaaResigns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Jo Bamford to head up JCB Compact Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Linamar To Expand In China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Liugong And Cummins Announce Joint Venture Partnership To Build Engines In China . . . . . . . . . . . . . . . . . . . . . . . 7

AtlasCopcoToExpandPortableEnergyDivision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Scania’sNewGlobalEngineRange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Lavendon Acquires Blue Sky Access Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

TerexReceivesLargeOrderforDumpTrucksFromTheGapGroup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

ConstructionIndustryUnlikelytoReturnToGrowthUntil2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Iveco Launches China Joint Venture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

DeereAnnouncesAdditionalInvestmentsinRussia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

SandvikAnnouncesPublicOfferToTheMinorityShareholdersOfSecoTools . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Sandvik Reduces Workforce In Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

HaulotteAddsCompact10/12ScissorsAtChinaPlant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

KonecranesGetsOrderforGoliathGantryCrane . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

MAN’sTakeoverbyVolkswagenApproved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

MontabertAppointsNewDealerinU.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

CaterpillartoProvidePowerSolutionsforNorwegianOffshoreSupplyVessel . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Caterpillar Completes Acquisition of MWM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

ScaniaStrengtheningItsPresenceInColombiaByDelivering295CityBusesForBogotá . . . . . . . . . . . . . . . . . . . . . 14

WackerNeusonRemainsOnAGrowthPathInThe3RdQuarterOf2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

TanfieldGroup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

AtlasCopcoBuildsNewCompressorFactoryInChina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Man Truck & Bus Increases Commitment In India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

JcbSaysIndiaGrowthToDeclineTo15%InFy2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

SpeedyHireWins€2.4MillionNuclearMaintenanceContract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

ScaniaGetsOrderFor121BiofuelBuses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

RitchieBros.AuctionInMoerdijk,TheNetherlandsSetsOnlineRecord . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

AshokLeylandJohnDeereLaunchesFirstProduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Komatsu&RioTintoEnterIntoAgreementFor150TruckDeployment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

KomatsuCEOLooksforAcquisitionTargetsinU.S.,Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

EscortsConstructionEquipmentEyesLandInGujaratAndMpForManufacturingUnit . . . . . . . . . . . . . . . . . . . . . . 18

ScaniaReducesClimateImpactUsingGpsTechnology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

TitanPutOptionForGoodyearFranceExpires . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

TerexFuchsAppointsBlueGroupasnewdealerforUKmarket . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

TerexappointsMEDCOasdistributorinKingdomofSaudiArabia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

VolvoequipmentdealershipinSaudiArabiasoldtoFAMCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

PowerscreenAgreementWithKwintmadi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

A-PlantFirstHalfRevenuesRise14%AndOperatingProfitsClimb26% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

SanyEyesPlantsIn10CountriesAsChinaDemandDeclines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

ManitowocReportsCraneShipmentDelayed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Rostelmash Plans Production Increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

ZeppelinToMakeHugeFleetInvestmentsIn2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21




Peter Dahlsten, senior vice president Ramirent Sweden added: ”It is a strategic goal of Ramirent Sweden to expand our scaffolding and light machinery business and to this end TLM is a very good fit for us. With the acquisition, Ramirent further strengthens its presence in Linköping and Norrköping, and expands its outlet network to Motala.”

The TLM acquisition is the latest in a number of small to mid-sized acquisitions it has made in the past 12 months. Earlier this month is bought a small Swedish portable accommodation rental company, Consensus Entreprenad. Consensus Entrenad, which was founded in 1993, specializes in the rental of mobile and customized modules. It has annual sales of about €2.8 million and eight employees. The company operates one outlet in Karlskoga and is a leading company in its local market and among industrial customers also in other parts of Sweden.

First Ramirent bought the scaffolding division of Ajos A/S, a subsidiary of Danish construction company MT Højgaard A/S. In the same transaction Ramirent Denmark sold its hoist and working platforms to Ajos.

“Ajos is a leading scaffolding rental supplier in Greater Copenhagen and the acquired scaffolding solutions will complement Ramirent’s offering in particular in renovation and weather cover projects where we wish to strengthen our position,” said Erik Høi, senior vice president of Ramirent Denmark. “Ajos’ scaffolding customers will hereby also benefit from Ramirent’s entire range of dynamic rental solutions.”

Ramirent had annual revenues of €36 million in 2010 in Denmark, with a network of 21 locations. The acquisition makes Ramirent one of the top scaffolding rental suppliers in Denmark. Ramirent has facilities in 13 European countries.

Speedy Expands Fleet with Order Worth Over €3.85 million

Doosan Infracore Portable Power has secured an order worth over £3.2 million (€3.85 million) from Speedy, the UK’s leading provider of equipment rental and support services. The order covers a range of equipment from Doosan including the 7/31EG portable compressor generator.

Kiloutou buys Lyon rental company Top’Loc

Kiloutou has announced another French rental acquisition, buying Top’Loc, a Lyon-based company with 18 depots and 120 employees. This latest deal follows Kiloutou’s recent acquisition of BM Location and confirms the company’s ambitions to grow rapidly.

Top’Loc has three divisions, a general rentals business called Top’Loc Lyon, an events business called Top’Loc Réception, and a portable toilets operation called Top’Loc Sanit’. Initially, Top’Loc will be run as a separate business and Philippe Thirion, founder and managing director of Top’Loc, will stay on as manager of the business. The deal will close in January 2012.

COMPANY NEWS



Lavendon Group Combines UK Rental Businesses

The Lavendon Group has decided to bring its three UK rental businesses under a single brand, Nationwide Platforms. Following 14 acquisitions that took place over the 1990s and early 2000s, Lavendon Access Services organized its rental business into three divisions: EPL Skylift, the vehicle-mount division; Panther Platforms, the self-propelled platform division with a local bias; and Nationwide Platforms, the self-propelled division with a national bias. Over subsequent years the demarcation between the divisions has become blurred, such that Nationwide now has more local customers than Panther and Panther had some big national accounts. In addition most of the EPL operations exist in depots shared with the other divisions, which allows more flexibility for both customers and the hire desk.

Mike Potts, chief executive officer of Lavendon Access Services, said that running the divisions separately was confusing to customers; it diluted the sales and marketing effort and increased internal costs. In addition different IT systems, different working methods and operational overlaps, such as two transport fleets, created inefficiencies that impinged both on the business and the customer. “We are offering a single service - safe working at height,” said Mr Potts, “so we needed to get to a single brand.”

Market research showed that the Nationwide Platforms brand was not only the most widely known of the UK Lavendon brands, but also the best known in the UK. 43% of the group surveyed named Nationwide as a brand with which they were familiar, 16% named Panther, 8% named EPL and just 4% Lavendon. These results made the selection of the new brand name easy particularly when paired with research that found the brand was associated with high quality.

The new Nationwide Platforms website has already gone live and over the next couple of months the rebranding will be rolled out across the company. This will include aesthetic rebranding of depots and equipment as well as implementing a single IT system and operating methods across the organization.

Ashtead Raises Profit Expectations

British industrial equipment hire firm Ashtead raised profit expectations for the second time this year after a strong first half, boosted by cash-strapped customers in its core U.S. market choosing to rent rather than buy. In September Ashtead raised full-year expectations after more than doubling first quarter profits, and continued the trend with pretax profits for the three months to October 31 rising to £50.6 million pounds (€60.9 million) from £18.1 million (€21.8 million) in 2010.

Ashtead, which makes over 80 percent of its profit from its U.S. rental unit Sunbelt, said pretax profit for the first half of the year was £84.4 million (€101.6 million), up from £30 million (€36 million). It now anticipates full-year profits to be “substantially ahead of its earlier expectations”.

AB Volvo To Elect New Chairman of the Board

The Election Committee of AB Volvo proposes the election of Carl-Henric Svanberg as new Chairman of the Board at the Annual General Meeting on April 4, 2012. AB Volvo’s current Chairman Louis Schweitzer has declined reelection. The Election Committee also





proposes the reelection of Board members Peter Bijur, Jean-Baptiste Duzan, Hanne de Mora, Anders Nyrén, Ravi Venkatesan, Lars Westerberg, Ying Yeh and Olof Persson.

“Carl-Henric Svanberg has a background extending 15 years during which he has held several positions as President and Chairman, and is recognized as a highly skilled leader. He has long and profound experience as President of world-leading companies that hold global positions and as Chairman of one of the world’s largest companies. Carl-Henric Svanberg, together with the other proposed Board members, will form a strong Board that is well-suited to address the future challenges of the Volvo Group,” says Election Committee Chairman Carl-Olof By.

New Holland Construction Focuses on Compact Products

New Holland Construction announced that in North America it will refocus on its strengths: the compact product lines for the landscaping, utility, residential construction and agriculture industries, among others. As a result, starting in 2012 New Holland Construction will begin withdrawing from the North American market its crawler dozers, motor graders, 80+ horsepower wheel loaders, 6+ ton excavators, and telescopic handlers. New Holland Construction will continue to offer compact products and associated attachments, including the successful skid steer loaders, compact track loaders, tractor loaders, loader backhoes, compact wheel loaders, and compact excavators. This announcement only concerns the North American market, as New Holland Construction will continue to sell the heavy equipment product lines in all other world markets.

Daly Plant Hire Expands Fleet of Volvo Haulers

Surrey, U.K.-based Daly Plant Hire has taken delivery of a new Volvo A25F articulated hauler, bringing its mixed fleet of C, D, E and now F series haulers to a total of fifteen. The family run business has operated a mix of A25 and A30 Volvo trucks over the past 20 years, developing a niche in the hire market in the southeast on projects such as Heathrow Terminal 5, the widening of the M25 and the 2012 London Olympics site.

Atlas Copco To Develop High-Speed Geothermal Drilling Technology

Atlas Copco Secoroc LLC and Sandia National Laboratories have been awarded $3.4 million (€2.6 million) by the U.S. Department of Energy (DOE) for a joint research project. The aim is to develop technology that would significantly increase the speed of drilling deep geothermal wells and reduce the cost of investment in this renewable energy source.

Geothermal energy has great potential as an environmentally friendly source of energy in many parts of the world, but developments are constrained by the high costs related to drilling deep wells in hard rock and high temperatures. Percussive tools, or down-the-hole hammers, are a promising technology for geothermal exploration and development as they rely on mechanisms well suited for the type of rock normally found in geothermal formations. Compared to conventional geothermal drilling methods, down-the-hole hammers could quadruple the penetration rates.

During the three-year project Atlas Copco Secoroc will design, develop, and test equipment. Sandia National Laboratories will provide computer models to evaluate



hammer performance, materials and components. Sandia will also develop a high temperature test cell to evaluate hammer prototypes.

The grant is one of 32 research and design projects for geothermal power production funded through an initiative by the DOE’s Office of Energy Efficiency and Renewable Energy. These projects are designed to meet the challenge to generate 80% of U.S. electricity from clean energy sources by 2035. Atlas Copco was awarded the second largest contract in the DOE initiative.

Dana and Bosch Rexroth Finalize JV For Off-Highway Transmissions

Ohio, U.S.-based Dana Holding Corporation and Germany-based Bosch Rexroth AG have completed their 50-50 joint venture to develop and manufacture advanced powersplit drive transmissions for the off-highway market. Known as Dana Rexroth Transmission Systems, the joint venture engineers, manufactures, and markets hydromechanical variable powersplit transmission systems for global off-highway markets. The hydromechanical variable transmission (HVT) will play an important role in improving fuel economy, productivity, emissions reductions, and vehicle maneuverability. Dana and Bosch Rexroth are each contributing staff, intellectual property, and capital to the new joint-venture company, which is based in Arco, Italy.

“This is a combination of two respected suppliers to the global off-highway equipment market,” said Dana Chief Technical Officer George Constand. “Dana’s expertise in drivetrain system engineering and manufacturing and Bosch Rexroth’s deep experience in hydraulics and control systems will enable this enterprise to deliver a unique combination of advanced transmission solutions.”

“The intelligent interaction of hydraulics and mechanics will be the driving factor for future innovation in drive transmissions,” said Reiner Leipold-Buettner, President of Business Unit Mobile Applications, Bosch Rexroth. “Only those with the best know-how in both fields will master these sophisticated market demands. Dana and Bosch Rexroth ideally combine both fields.”

Dana Rexroth Transmission Systems’ HVT series are targeted for the construction, material handling, and forestry markets with initial focus on wheel loaders and graders up to 360 horsepower (270 kW). Tests on front-end loaders with the new HVT powersplit systems demonstrate fuel savings in the drivetrain of more than 20 percent when compared with the same vehicle outfitted with a conventional torque converter transmission.

Ramirent Senior VP Kari Aulasmaa Resigns

Kari Aulasmaa, Senior Vice President, Finland and Europe East in the Ramirent Group, has informed the company that he has decided to leave Ramirent for a leading position in another industry. The search for a successor will be commenced immediately. Mr. Aulasmaa will remain in his present position until April 2012, or until a replacement is in place.





Jo Bamford to head up JCB Compact Products

Effective 1 November, 2011, Jo Bamford, the son of JCB chairman Sir Anthony Bamford, has been appointed managing director of JCB Compact Products. Mr. Bamford replaces long-serving JCB executive Chris Spring, who is due to retire in late 2012. The Compact Products division includes JCB’s micro, mini and midi excavators only - machines weighing from 800kg up to 8 tons. Together with his new role as managing director of JCB Compact Products, the company said Mr. Bamford would continue to retain responsibility for JCB Utility Products. The combined annual turnover of both businesses is around £150 million (€172 million).

Mr Bamford joined JCB in 2002 as a product specialist for the company’s skid steer product range based at the North American headquarters in Savannah, Georgia. For the past eight years he has been managing director of JCB Utility Products, which is based in Staffordshire, UK.

Linamar To Expand In China

Linamar Corporation, based in Guelph, Ontario, Canada, has said that it is planning to open two new production facilities in China over the next two to three years. It is possible that one of these might also produce Skyjack aerial platform products, if local or regional market demand warranted it. Linamar opened its first facility in China in 2009 but has said that further additions could come as part of its plans to expand overseas production and reduce its reliance on the North American auto industry. Around 30 percent of its revenues are currently generated by its international operations. The news also comes as unemployment in its home town of Guelph Ontario fell to around 4.5 percent, making it tougher to find the required skills locally.

Skyjack already has a sales and support team on the ground in China and is looking to expand its operations there as the local market starts to take powered access seriously. Any local production would also be encouraged as regional markets are persuaded that the quality of access products coming out of China are at sufficiently high levels to switch sourcing from U.S. and European plants.

Liugong And Cummins Announce Joint Venture Partnership To Build Engines In China

Cummins Inc. and LiuGong Machinery Co. Ltd. formed a joint-venture partnership to manufacture MidRange engines at a new facility to be built in Liuzhou City, Guangxi Province, in southern China. The new joint-venture operation will begin engine production in 2013. Initial operations will begin as early as 2012 with engine-kit assembly, providing a useful lead-in to full production engines in 2013. Volume is planned to reach 50,000 units with the capability to expand in the future. The joint-venture engines will be based on Cummins MidRange engines meeting Tier 2 and Tier 3 emissions. The MidRange engines will be fully localized in China and adapted for construction equipment usage by the joint-venture to meet the demand of LiuGong and other equipment manufacturers in China.

This new investment in MidRange engine production will complement Cummins’ existing manufacturing capabilities in China that have focused primarily on the automotive market. Development and optimization of Cummins MidRange engines specifically for



China adds significant value to the construction machinery industry in China, which has a strong and growing demand for high performance, reliable engine power.

Cummins currently supplies MidRange engines to LiuGong for both its domestic market in China and for its global operations. The joint-venture operation in Liuzhou City will focus on introducing engines purpose-designed and fully localized for construction equipment in China. This fit-for-market approach recognizes the opportunity offered by customizing engines to meet specific economic and operational requirements.

Atlas Copco To Expand Portable Energy Division

Atlas Copco said it will continue to develop its renamed Portable Energy division, expanding the multi-brand approach it has taken with compressors into other products including generators and pumps. Portable Energy, the new name for Atlas Copco’s Portable Air division, has embarked on a ‘five pillars’ strategy, with the business focusing on five areas: compressors, generators, lighting towers, pumps, and used equipment.

At the same time, Atlas Copco announced that Horst Wassel, president of the division’s Specialty Rentals business, has been appointed president of the recently created Quality Air division. A new president for the rental business is now being sought.

Geert Follens, president of Portable Energy, speaking at a dealer roadshow held at the division’s headquarters in Antwerp, Belgium, said; “the multi-brand strategy is well developed in compressors, and Gesan [the Spanish generator manufacturer recently acquired by Atlas Copco] gives us a kick-start on the multi-brand for generators.”

Portable Energy already markets generators from small sized up to a new 1 MW containerized unit, but Gesan adds bigger gensets - up to 3 MW - and also adds geographical strength in Africa and the Middle East.

Mr Follens said the pump range will also be developed. Portable Energy sells the WEDA range of submersible pumps. “We see that we have gaps and we are determined to fill these gaps”, said Mr Follens, “We realize that there is a diesel driven pump market - we are looking for a solution to that”. He said the solution “could be an acquisition.”

A new used equipment division - run by former Portable Air communication manager Sam Waes - is another part of the strategy. A Polish based used equipment center has been opened to refurbish and sell Atlas Copco Portable Energy Products, with other worldwide centers to be established in the coming year or two. There may be as many as three other locations worldwide, although the exact plan has still to be confirmed. The new operation has around used 50 units for sale now - and can be seen at the Portable Energy website - and are sold under a five different ‘quality’ levels.

Scania’s New Global Engine Range

Scania is taking the final steps towards a common global engine platform based on the latest technology for all markets and for all emission standards. Strength, high performance and fuel efficiency are key characteristics. Easier servicing and parts supply contribute to improved uptime for operators. Work on Scania’s new engine platform started in the early 2000s. In parallel, several auxiliary technologies have been developed





inhouse to create the flexibility needed. The technologies include engine management, fuel injection and exhaust aftertreatment, all of which are used in different combinations to suit market conditions. The engines are manufactured at Scania’s factories in Europe and South America, using the same production methods and interchangeable parts and components. The development of the new engine generation and the technology to meet future emission legislation took more than five years and involves costs for Scania of approximately SEK 10 billion (€1.1 billion).

Lavendon Acquires Blue Sky Access Limited

Lavendon Group has acquired specialist engineer Blue Sky Access Limited for an initial consideration of £3.4 million (€4 million). Blue Sky designs and engineers products to improve efficiency and safety in the use of powered access equipment. The majority of these products represent intellectual property and are protected by existing and pending patents. Lavendon has been working with Blue Sky since 2008 and the acquisition is a further step in delivering Lavendon’s strategy of creating points of differentiation between the Group and the market place.

Blue Sky’s latest anti-entrapment development, the Sky Siren, which has been trialed successfully by a number of the Group’s customers, provides Lavendon with a new and unique safety product capable of being widely marketed to a number of different end-user sectors. Initially, this product will be made available to the Group’s UK customers and, during 2012, will gradually become available in the Group’s other geographical markets.

The latest unaudited accounts for Blue Sky for the year ended 31 December 2010 showed revenue of £0.4 million (€0.48 million), a profit before tax of £0.1 million (€0.12 million) and gross assets of £0.3 million (€0.36 million). The consideration upon completion is £3.4 million (€4.1 million), payable in cash. Additionally, deferred consideration of £1.5 million (€1.8 million) and £1.0 million (€1.2 million) will become payable in cash by Lavendon on 18 October 2012 and 18 October 2013, respectively. Further consideration of up to £1.5 million (€1.8 million) could become payable over the next four years dependent upon future revenue generation. Should Lavendon decide to licence Blue Sky technology outside its current territories of operation in the three years following the acquisition, a percentage of the associated profits will be payable to Blue Sky’s current shareholders.

Terex Receives Large Order for Dump Trucks From The Gap Group

U.K.-based plant hirer Gap has placed an order for 200 Terex dump trucks, worth more than £2 million (€2.4 million). It includes several models ranging from 1t to 9t. Gap has also ordered 40 rollers, breakers and trailers. The new machines will be allocated throughout Gap’s 60-strong depot network.

Construction Industry Unlikely to Return To Growth Until 2014

According to the Construction Products Association (CPA), the London-based U.K. association of manufacturers and suppliers of construction products components and fittings, the U.K. construction industry is unlikely to return to growth until 2014 at the earliest.



In fall, the CPA forecasted that recovery would be put back from 2012 to 2013. But the past quarter has failed to see strong enough private sector recovery to offset the impact of government spending cuts. As a result, there will be no upturn until at least 2014, its economists reckon. Even worse, 2012 is likely to prove an even tougher year than 2011.

CPA chief executive Michael Ankers said: “Although government is committed to cut capital expenditure by 20% over the next four years, the hoped for robust recovery from the private sector, to compensate for these cuts, is not materializing. With both the commercial and housing sectors still performing badly, our latest forecasts indicate that construction output will fall by more than 1% this year, a further 3.6% next year and no growth in 2013. Recovery finally arrives in 2014, but by then we will have experienced the worst decline in construction activity for more than 30 years. It is essential that more is done by government to kick start the economic recovery. “

Other key points in the latest CPA forecasts include:

Total housing starts to fall 1% in 2011 and a further 4% in 2012

Public construction (including PFI) to fall 24% by 2014

Education construction to fall 41% by 2014

Health construction to fall 45% by 2014

Private sector construction to rise 18% by 2015

Construction of commercial offices to rise 5% in 2012 and 14% in 2013.

According to the CPA, housing starts in 2012 will be the second lowest year since 1945. Although private sector housing is slowly recovering, public sector housing starts are forecast to fall by a third, leading to an overall reduction in the total number of housing starts in 2011 and 2012.

“By the end of the forecast period we will have a shortfall of more than two million homes in the UK,” Mr Ankers said.

He added: “Equally worrying is the commercial sector, the largest construction sector and a bellwether for private sector activity. Although commercial construction in central London is buoyant, there is little activity in rest of the country. As a result this sector is expected to see a fall of three per cent in 2011 and four per cent in 2012 before a return to growth in 2013.

Iveco Launches China Joint Venture

The new joint venture Iveco Hongyan Commercial Vehicle Co. (SIH) between Iveco, SAIC (Shanghai Automotive Industry Corporation) and Chongqing Machinery has launched the Kingkan heavy duty truck. Its main features are embodied in its name: in English “Kingkan” is translated as, “king” meaning a leader, “Kan” the name of a very strong animal in Chinese legend, representing great power. Therefore, Kingkan, is a leading product benefiting from strength and power, creating a new legend for the company. Kingkan is expected to compete in a domestic market where sales volumes are higher than nine hundred thousand units per year. The truck has many qualities and reliability that





qualify it to operate in other countries all over the world. The launch is the confirmation that the products of the joint venture Iveco Hongyan Commercial Vehicle Co. (SIH) are the result of the integration of Iveco’s European technological excellence and quality in the Chinese market.

Deere Announces Additional Investments in Russia

Deere & Company announced plans to invest approximately $32 million (€24 million) to expand its production capacity in Orenburg, Russia. Deere has purchased and will renovate a factory in the city and move existing operations in Orenburg to the new, larger facility. The investment will increase the available manufacturing space for John Deere in Orenburg by 600 percent, resulting in additional production processes being localized and an expanded product offering from four current models to fifteen models of seeding, tillage, and application equipment.

Earlier this year, Deere announced that it would double the manufacturing space at its Domodedovo production facility near Moscow and establish its own leasing company in Russia for the sale of agriculture, construction and forestry machinery.

Sandvik Announces Public Offer To The Minority Shareholders Of Seco Tools

Sandvik AB’s offer to the minority shareholders of its subsidiary Seco Tools AB has been accepted by shareholders representing 55,741,645 class B shares in Seco Tools, corresponding to 38.3% of the shares and 10.4% of the votes. In total, Sandvik (including subsidiaries) now holds 98.7% of the shares and 99.6% of the votes in Seco Tools. The Board of Directors of Sandvik has resolved to issue 66,889,974 new Sandvik shares as consideration in the offer and to extend the acceptance period up to and including 26 January 2012.

Sandvik AB (”Sandvik”) announced a recommended public offer to acquire all remaining shares in its subsidiary Seco Tools AB (“Seco Tools”), one of the world’s largest manufacturers of innovative metal-cutting tools. Sandvik’s group strategy confirms cutting tools as a core area, emphasized by the forming of the new business area Sandvik Machining Solutions, with significant growth and profitability potential.

Sandvik Reduces Workforce In Sweden

Sandvik Sandvik Materials Technology introduced a comprehensive improvement program that aims to increase profitability to a significantly higher and sustainable level and to strengthen the business area’s leading position in key segments. One of the objectives of the program is to sustainably reduce the overall cost structure by approximately 500 million SEK (€56 million) over a two to three year period, through such measures as reducing costs for staff and administration in addition to cost optimization of the sales organization.

Following a review of the organization, a structural redundancy corresponding to 500 employees globally has been identified, of whom about 295 employees are in Sweden (230 in Sandviken and 65 in Hallstahammar). In Sandviken, the redundancies only affect salaried employees. In Hallstahammar, 20 salaried employees and 45 employees under collective agreements are affected.



As a result of the Sandvik Group’s new strategy and organization, the Sandvik Mining and Construction business area will be separated into two business areas, Sandvik Mining and Sandvik Construction as of January 2012. The changes are expected to result in a redundancy of 70 salaried employees in Sandviken. The global review of Sandvik Mining and Construction’s organization is still in progress. The changes are expected to be completed during the first half of 2012.

Haulotte Adds Compact 10/12 Scissors At China Plant

Haulotte Group has started production of its Compact 10 and 12 electric scissors at its Chinese facility in Changzhou. The company has been producing 6 and 8 m scissors at the plant for the past 18 months. Five of the larger scissors have now been produced at the plant and two are destined for an end user customer in Shanghai. Booms and rough terrain scissors are not yet being made at the facility. He said new products were being introduced step by step to ensure that production quality was the same as in France. The vast majority of the machines produced in China are exported for other Asian markets.

Konecranes Gets Order for Goliath Gantry Crane

Konecranes received a major order for a Goliath gantry crane from Brazilian shipyard Ecovix-Engevix Construcões Oceanicas S.A. (“Ecovix-Engevix”). The shipyard, located in the city of Rio Grande do Sul, builds drill ships for the oil and gas industry. The Goliath gantry crane, which in its combination of lifting capacity and rail span will be the biggest Goliath gantry crane in the world, will be delivered to Rio Grande do Sul in October 2012. The parties have agreed not to disclose the value of the order, but deliveries of similar scope are typically worth tens of millions of Euros.

The huge Goliath gantry crane now ordered will significantly raise productivity at the shipyard. With a lifting capacity of an impressive 2,000 tons and a span of 210 meters, the crane will be able to handle considerably larger blocks, which will shorten dry dock time for vessels.

MAN’s Takeover by Volkswagen Approved

The majority takeover of MAN SE by Volkswagen AG is complete. The only remaining condition for completion of the mandatory public offer made to MAN SE shareholders by Volkswagen AG has been fulfilled following clearance of the transaction by the Chinese merger control authorities on 3 November 2011. Prior to this, the transaction had already been approved by the European Commission, as well as numerous other authorities.

All shares tendered to Volkswagen AG by MAN SE shareholders in response to its offer of 31 May 2011 have now been transferred to the new majority owner. Volkswagen now holds a total of 55.90 percent of the voting rights in MAN and 53.71 percent of its share capital. This clears the way for close cooperation between MAN, Volkswagen and Scania.

Deeper cooperation between MAN, Volkswagen and Scania is aimed at sustaining the growth path pursued by the Munich-based vehicle and engineering specialist and promoting ongoing expansion of its position as one of the world’s leading transport-related engineering enterprises. Together, the companies will create one of the world’s





leading suppliers of commercial vehicles. This cooperation will form a basis for exploiting extensive synergy potential. The companies involved anticipate that synergies amounting to at least €200 million per annum can be achieved, mostly in the procurement sector. In the long term, substantial additional potential lies in intensive cooperation in the production sphere, as well as in the field of research and development. No personnel cuts are planned in the course of the amalgamation process. MAN’s headquarters will remain in Munich, all the company’s sites should be retained unchanged and the independence of its brands preserved.

Montabert Appoints New Dealer in U.K.

Leach Lewis Heavy has been appointed an authorized dealer for the full range of Montabert hydraulic breakers and demolition/recycling equipment in East Anglia and the East Midlands. The new Montabert dealership will be based at the Leach Lewis Heavy operation at Whittlesey near Peterborough in Cambridgeshire. Counties covered are Norfolk, Suffolk, Bedfordshire, Cambridgeshire, Leicestershire, Northamptonshire and Warwickshire.

Caterpillar to Provide Power Solutions for Norwegian Offshore Supply Vessel

Caterpillar Marine Power Systems was selected to provide two 6 M 25 C and two 9 M 25 C propulsion engines for an Ostensjo Rederi AS offshore supply newbuild. Each 6 M 25 C engine will provide 2000 kW @ 750 rpm. The 9 M 25 C will each provide 3000 kW @ 750 rpm of rated power. All engines feature a new innovative air injection system, designed to ensure load response remains in a low rpm range and are packaged with the Siemens BLUEDRIVE PlusC diesel electric propulsion systems. The vessel is slated to begin operations in fall 2013.

Caterpillar Completes Acquisition of MWM

Caterpillar it has finalized the purchase of MWM Holding GmbH (MWM) from 3i and funds managed by 3i for €580 million This action follows the European Commission’s recent clearance of the transaction. MWM is a leading global supplier of sustainable, natural gas and alternative-fuel engines. The acquisition of MWM will enable Caterpillar to significantly expand customer options for sustainable power generation solutions.

MWM will become part of Caterpillar’s Electric Power Division, which supplies diesel and natural gas generator sets and integrated power systems involved in the generation, control and supply of electricity. “The completion of the MWM acquisition represents the latest step in our strategic plan to aggressively grow our energy and power systems business,” said Gerard Vittecoq, Caterpillar group president with responsibility for Energy and Power Systems. “More and more customers want a gas option for their engines. By combining our strengths in diesel and gas power generation with the technology and product strength of MWM, we are well positioned to be a lead provider in gas engine solutions for our customers.”

Peter Grosch has elected to step down as chairman of MWM. Mr. Grosch will continue to support Caterpillar as integration advisor. Willy Schumacher will assume responsibility for MWM as managing director, reporting to Bill Rohner. MWM will remain headquartered in Mannheim, Germany.



Scania Strengthening Its Presence In Colombia By Delivering 295 City Buses For Bogotá

Scania has received an order for 295 bus chassis from the Colombian cooperative Coobus, one of the operators responsible for the public transport system in Bogotá. The buses will be delivered during 2012 and 2013 and will be put into service on new routes in the capital city’s TransMilenio bus transport system, which is widely recognised for its efficiency. Bogotá has one of the world’s most highly developed Bus Rapid Transit (BRT) systems, with 1,400 articulated buses in service, of which more than 200 have been delivered by Scania to date. Scania’s delivery to Bogotá consists of 277 two-axle city bus chassis with 250 hp engines and 18 three-axle articulated bus chassis with 310 hp engines. The buses will be bodyworked in Colombia by the Brazilian bus manufacturer Marcopolo. The deal is being carried out with assistance from the Brazilian Development Bank (BNDES), which will contribute financing of €69 million for Scania’s exports of up to 454 buses to Colombia.

Wacker Neuson Remains On A Growth Path In The 3rd Quarter Of 2011

Munich-based Wacker Neuson reported increased revenue and earnings in the third quarter relative to the previous year. Business in core markets was particularly strong. The Group also upped its forecast for 2011 again and expects to grow further in the coming year.

At €249 million, revenues for Q3 2011 were up 27 percent from €196 million the previous year “The economic slowdown prompted by the debt crisis did not have any impact on Wacker Neuson in the third quarter,” explained Cem Peksaglam, CEO of Wacker Neuson SE. “Our compact equipment segment proved particularly dynamic. European markets such as Germany, France, Sweden and Poland as well as markets in South America were key growth drivers here,” continued Peksaglam. In the light equipment segment, the Group generated strong business in the US, Russia and Germany. Due to the Group’s optimized cost structure, the increase in third quarter revenues doubled Group earnings relative to the previous year, resulting in profit before interest, tax, depreciation and amortization (EBITDA) of €50 million compared to €25 million in Q3 2010. This corresponds to an EBITDA margin of 19.9 percent compared to 12.7 percent in the previous year. At €27 million, profits for the period after tax and minority interests almost trebled during the third quarter compared to €10 million in 2010. Earnings per share thus totaled € 0.39 compared to €0.14 last year.

“With EBITDA at €121 million, we have already achieved our target for the entire year after only nine months. This has led us to raise our forecast for 2011 once again,” explains Gunther C. Binder, CFO of Wacker Neuson SE. Mr. Binder is also optimistic about the fourth quarter of 2011 in view of strong order intake. The Executive Board now expects revenue for fiscal 2011 to total around €945 million (previous forecast: €930 million), accompanied by an EBITDA margin of around 15 percent (previous forecast: 13 to 14 percent). “Even if market expansion slows, our growth strategy comprises effective measures that will see us grow faster than the market. Our outstanding flexibility and financial stability also enable us to react quickly to market changes and capitalize on opportunities,” states Peksaglam. “We thus remain committed to breaking the €1 billion





revenue mark in 2012 for the first time and achieving an EBITDA margin in excess of 15 percent.”

Tanfield Group Subsidiary Files With SEC For Public Offering

Ariel work platform focused Tanfield Group plc announced that its US subsidiary Smith Electric Vehicles Corp filed a Form S-1 Registration Statement with U.S. Securities and Exchange Commission for a proposed Initial Public Offering on The NASDAQ Global Market. The company is the world’s leading manufacturers of electric commercial vehicles; battery-powered vans, and trucks. In 2011 its United States subsidiary bought its European parent for $15 million (€11.5 million). It is based in Kansas City, Missouri. Founded in 1920 in northeast England, the parent company produces the largest range of commercial electric vehicles in the world.

Atlas Copco Builds New Compressor Factory In China

Stockholm, Sweden-based Atlas Copco began construction of a new manufacturing facility for compressors in Wuxi, China, to meet the growing demand for compressors from the Chinese and other Asian markets. The investment of approximately MSEK 150 (€17 million) includes the construction of a new compressor assembly factory, a test lab and a center for research and development. The new factory and the upgrade of existing facilities will allow for increased production of portable compressors, industrial and oil-free air compressors as well as compressor elements. Located about 10 kilometers from the current Atlas Copco Wuxi plant, in China’s Jiangsu province, the new factory occupies 45 000 square meters. The new production facility is planned to be operational in July 2012, serving both the Construction and Compressor Technique business areas.

Atlas Copco currently has more than 5 ,000 employees in China, working at 13 manufacturing facilities and more than 100 offices around the country.

Man Truck & Bus Increases Commitment In India

MAN Truck & Bus has taken over the Indian joint venture MAN FORCE TRUCKS Pvt. Ltd.. This agreement between the two joint venture partners, FORCE Motors Ltd. and MAN Truck & Bus, was subject to the receipt of the necessary approvals. The joint venture was founded in 2006 and produces heavy MAN trucks of the CLA type for the Indian market and for export to countries in Asia and Africa. After some initial difficulties in the starting phase, the production has been ramped up. The products range from chassis to tippers for the construction industry and semitrailer tractors for long-haul transport. Back in 2008 MAN Truck & Bus increased its holding in MAN FORCE TRUCKS Pvt. Ltd. from 30 to 50 percent. In purchasing the shares held by FORCE Motors Ltd., MAN Truck & Bus is assuming sole responsibility for production and sale of the MAN CLA inside and outside India.

JCB Says India Growth To Decline To 15% In Fy 2012

JCB India Limited, India’s largest earth-moving and construction equipment company, said its revenue growth is likely to slow down to 15 per cent in the 2011-12 financial year. JCB, which claims more than a 50 per cent share of the construction equipment market in India, sold 21,000 machines in the country in the 2010 calendar year. The subsidiary



logged revenues of Rs 4,950 crore (€in 2010-11, up 45 percent compared to the previous financial year. The company, which has three manufacturing plants in India, exports machines to neighboring countries, Indonesia and Africa as well, with these shipments accounting for Rs 300-400 crore of its total revenues.

JCB India Limited Managing Director and CEO Vipin Sondhi noted that infrastructure has become a dominant theme across political parties and there are already signs that the “government is getting back to clearing large projects,” which he termed a positive trend. “But we expect this (India) will become increasingly a manufacturing base for at least this part (South-East Asia and the Middle East) of the world,” Sondhi said.

Speedy Hire Wins €2.4 Million Nuclear Maintenance Contract

Speedy Hire has signed a three-year agreement with the Nuclear Decommissioning Authority to supply lifting equipment to the nuclear processing sites Sellafield, Magnox, Dounreay and the remainder of its property. Speedy will supply equipment for maintenance services at the sites. Speedy estimates the agreement could be worth in excess of €2.4 million over the term of the contract. The company has previously supplied hire equipment to Sellafield on an ad hoc basis.

Scania Gets Order For 121 Biofuel Buses

A major order for 121 biofuel buses from Nobina strengthens Scania’s leading position as a supplier of vehicles that can be run on the renewable fuels available today. The order from Nobina, the Nordic region’s largest passenger traffic operator for buses, is Scania’s biggest order for gas engines to date and represents a breakthrough for the new generation of gas engines introduced by Scania in the autumn of 2010. Of the 121 buses for Nobina, 109 will be run on biogas and the rest on biodiesel. They will be put into service in public transport in Uppland and Skåne provinces in the summer of 2012.

Ritchie Bros. Auction In Moerdijk, The Netherlands Sets Online Record

Ritchie Brothers sold more than €33 million of equipment and trucks at a two-day unreserved public auction held at its permanent auction site in Moerdijk, The Netherlands on November 24 & 25, 2011. Ritchie Bros. registered more than 1,300 bidders from almost 70 countries, including 575 online bidders that purchased €5.7 million of equipment—a new site record. The auction featured almost 2,500 used and unused industrial equipment items and trucks that are utilized in construction, transportation, agriculture, mining, material handling and other industries. The items were sold on behalf of over 340 consigning customers.

Ashok Leyland John Deere Launches First Product

Ashok Leyland has entered the construction equipment business with the commercial launch of its first product, the model 435 backhoe loader, in a joint manufacturing project with John Deere. The product, rolled out of the brand new state-of-the-art Gummudipoondi facility of Ashok Leyland John Deere Construction Equipment Company, will be marketed under ‘Leyland Deere’ brand. The product was re-engineered and re-oriented for Indian customers. Reportedly, an investment of over Rs.200 crore had gone into the first phase of production. This investment would go up further as the joint





venture geared up to churn out second and third products from the assembly line. The joint venture is expected to come out with its second product in 2013.

Komatsu & Rio Tinto Enter Into Agreement For 150 Truck Deployment

Komatsu Ltd and Rio signed a Memorandum of Understanding (MOU) to take the next step in large-scale implementation of Komatsu Autonomous Haulage System (AHS) by committing to deploy at least 150 Komatsu AHS trucks into Rio Tinto Iron Ore Pilbara operations in Western Australia by the end of 2015 with equipment deployment beginning in 2012. Rio Tinto has been testing Komatsu AHS, the world’s first commercial autonomous mining haulage system, in the Pilbara since December 2008. During the trials the AHS technology demonstrated clear value to the business especially in the areas of health, safety and productivity.

Tom Albanese, Chief Executive, Rio Tinto, said, “This announcement further reinforces our longstanding alliance with Komatsu. We have been partnering with Komatsu, using their advanced truck technology at our mines, for almost 20 years. Autonomous haulage is an important component in our Mine of the Future™ program. These new 150 Autonomous trucks will work with our pioneering Operations Centre that integrates and manages the logistics of 14 mines, three ports and two railways. These technologies are revolutionizing the way large-scale mining is done, creating attractive hi-tech jobs, and helping us improve safety and environmental performance, and reduce carbon emissions.”

Komatsu CEO Looks for Acquisition Targets in U.S., Europe

According to a report by the Bloomberg news services, Tokyo-based Komatsu Ltd is looking for potential acquisition targets in the U.S. and Europe and plans to conclude a deal within three years, President Kunio Noji said.

The company is particularly interested in parts producers and technology products that make electronic components and systems to upgrade its hybrid earth-moving machines and mining trucks. Komatsu is also looking for a manufacturer of underground mining equipment to expand its products, he said.

“There are lots of good companies,” Noji said. “Right now it’s difficult to persuade targeted companies to be part of our company, and we don’t do hostile takeovers, but I think one day in two or three years they’ll come to us,” he said.

Komatsu is seeking to fend off competition from rivals including China’s Sany Heavy Industry Co. by developing value- added products and services. For example, Komatsu installs GPS devices on its machines, enabling workers in Tokyo to monitor how the machines are used at construction sites and to advise customers on fuel- saving strategies and parts replacement needs. It has sold 1,100 hybrid excavators that use less fuel than conventional models in Japan and China since their debut in 2008.

In 1996, Komatsu bought Modular Mining Systems Inc., based in Phoenix, Arizona, that has developed electronic systems that increase mine efficiency, helping it develop driverless mining trucks. Komatsu last month won an order from Rio Tinto Group to supply at least 150 driverless trucks to Australia’s Pilbara iron ore mines by 2015.



Mr. Noji expects mine operators won’t be able to continue open-pit copper mining in 10 to 20 years even as demand for the metal rises. Komatsu is seeking to add underground mining equipment to its products in anticipation of more underground mining.

Komatsu plans to raise prices in China, its largest market, by about 2 percent next year even as the government’s policy tightening slashed demand for construction machinery. Sales of excavators fell by 50 to 60 percent from 2010 levels in November and declined at a similar pace through December.

The timing of a recovery in China depends on how the government contends with inflation, Mr. Noji said. Komatsu forecast global demand for construction equipment will rise 6 percent in the year ending March 2012, as sales in Asia excluding China and in North America help cover falling demand in China.

Escorts Construction Equipment Eyes Land In Gujarat And Mp For Manufacturing Unit

India-based Escorts Construction Equipment (ECEL), the fully owned equipment arm of the Escorts Group, is in talks with the governments of Gujarat and Madhya Pradesh to acquire 40 acres of land for a manufacturing unit. Escorts will manufacture cranes, backhoe loaders and excavators at the proposed plant, which will have an installed capacity of 50,000 units. The company refused to share investment details but industry sources said Escorts will invest over Rs 5,000 crore (€770 million). Gujarat and Madhya Pradesh are fast emerging as the favored investment destination because of their tax regime and cheap labor. Gujarat has already attracted investments from domestic and foreign automakers.

Scania Reduces Climate Impact Using GPS Technology

Scania has developed a cruise control system that uses GPS to determine a vehicle’s position and to predict the topography of the road ahead. The cruising speed is adjusted before entering an ascent or descent, helping the driver make the most of every drop of fuel. The system can deliver a fuel saving of up to 3 percent when driving on undulating stretches of road. The new system – Scania Active Prediction – is a milestone in Scania’s systematic focus on drivers and helps them to save fuel and reduce their environmental impact. It is intuitive and adapts driving style to the topography in the same way as the most highly skilled truck drivers would do. The system also helps experienced drivers to save fuel when driving on new routes, in the dark or under adverse weather conditions.

Based on a 40-ton truck and trailer running 180,000 km/year, a fuel saving of 3 percent would reduce fuel consumption by about 1,700 litres per year. This is equivalent to an annual reduction in fuel costs of almost €2,200 and a reduction in carbon dioxide emissions of over 4 tons.

Scania will start to deliver trucks with the Active Prediction system to customers starting next year. There is topographic map data available today for around 95% of the road network in central and western Europe, which is also useful for operators that provide transit services from eastern Europe,Turkey and beyond.

Titan Put Option For Goodyear France Expires

Titan International announced that the put option Goodyear had for the Amiens, France, facility expired on November 30, 2011. Goodyear and Titan had entered into an





agreement in 2009 for Titan to acquire Goodyear’s Latin America farm tire business and their European farm tire business. The parties closed on the Latin America transaction on April 1, 2011. The European farm business and related put option contained a clause that Goodyear had to have a social plan for the closing of the passenger car business in Amiens France leaving 537 jobs in the farm business. The factory labor unions have been successful in the French labor courts holding up such plans for a number of years.

“It shows how screwed up things are in France when a company tries to save jobs,” commented Maurice Taylor, Chairman and CEO of Titan International. “Titan has other acquisitions that have been on hold while the put option was still active. Now Titan will pursue those options instead of waiting for the French union to start thinking about their members. Titan spent a lot of time and money trying to get Goodyear’s social plan approved but only a non business person would understand the French labor rules. The French workers are very good at what they do when they work but as I told the union personnel, you cannot get paid seven hours for three hours of work.”

Terex Fuchs Appoints Blue Group as new dealer for UK market

BLUE Group has been appointed as Terex Fuchs’ materials handling equipment distributor in the UK, succeeding Hydrex, who held the distributorship since 1999. Blue Group will take over Hydrex’s staff and Bristol premises, and will continue to operate the Hydrex Portishead office as the base for the Terex Fuchs dealership and integrate existing staff with its own Warrington, London, Bristol and Stirling offices.

Terex appoints MEDCO as distributor in Kingdom of Saudi Arabia

Jeddah-based company MEDCO is to distribute Terex Construction’s heavy machinery in the Kingdom of Saudi Arabia. MEDCO will handle distribution, servicing and parts for machines such as Terex’ backhoe loaders, wheel loaders and site dumpers across the country. Operating a series of branches in the eastern, central, western and southern provinces, MEDCO employs more than 150 people, and moved into a purpose-built facility in 2010. Terex has become more aggressive in the KSA construction equipment segment in the past 12 months, and is looking to double its market share in the region.

Volvo Equipment Dealership In Saudi Arabia Sold To Famco

Dubai-based Al Futtaim Auto and Machinery Co (FAMCO), the Al Futtaim Group’s distributor of commercial vehicles and industrial equipment, has announced the acquisition of 100 percent shareholding of Al Rehab Equipment and Machinery Company in Saudi Arabia, the exclusive distributor for Volvo Construction Equipment in the kingdom. FAMCO, which is already the Volvo Construction Equipment distributor for the UAE, has made this move as part of its wider regional expansion program. The acquisition will extend FAMCO’s reach in Saudi Arabia across five locations, with the main branch in Jeddah.

Powerscreen Agreement With Kwintmadi

POWERSCREEN has announced a restructuring of its distribution channel in Russia with the appointment of one dealer covering all of the European part of Russia, including Federal Districts 1, 2, 3 and 4, and the Sverdlovsk and Chelyabinsk Oblasts. Powerscreen



will now be represented in European Russia by Kwintmadi, part of the JVM Group, a company with almost 20 years’ experience in the trade and service of heavy equipment for some of the largest brands in the industry. JVM/Kwintmadi has a wide network of trade centers and service depots in all of the largest cities in European Russia.

A-Plant First Half Revenues Rise 14% And Operating Profits Climb 26%

For the six months ending 31 October 2011, A-Plant’s total revenues reached £93.7 million (€112.7 million), up from £82.4 million (€99.2 million) for the same period in 2010. Operating profits were up from £4.2 million (€5 million) to £5.3 million (€6.4 million), while EBITDA climbed from £24.4 million (€29.4 million) to £26.2 million (€31.5 million).

Compared to the first half of 2010, first half rental revenues for A-Plant grew by 11% to £86 million (€103 million) including 2% growth in average fleet on rent and 6% yield improvement.

Group revenues for parent company Ashtead, which includes the much larger Sunbelt operations in the U.S., was up 24% to £575.5 million (€691.9 million) from £484.3 million (€582.7 million) last year. Pre-tax profits nearly trebled to £84.4 million (€101.6 million), up from £30.0 million (€36.1 million) for H1 2010.

Sunbelt’s numbers were boosted by the first time inclusion of Empire Scaffold, acquired in January 2011.

Ashtead chief executive Geoff Drabble said: “Market share gains, the on-going structural shift to rental in the US and operational efficiency meant we delivered a very strong performance across a broad range of metrics despite end construction markets being at a cyclical low point. This is encouraging for both the short-term, where we expect a continuation of current trends, and the longer term where, when cyclical recovery comes, we expect to benefit significantly.

“With our robust debt structure, substantial capacity to fund fleet growth and the well-established momentum in the business we now anticipate a full year profit substantially ahead of our earlier expectations.”

Sany Eyes Plants In 10 Countries As China Demand Declines

Sany Heavy Industry plans to build factories in more than 10 foreign countries as domestic demand growth slows. The company intends to add facilities in emerging markets and resource-rich nations as it works to boost the proportion of sales generated overseas to 40 percent from about 10 percent within five years, Nobuhiko Oku, deputy general manager at Sany’s international sales arm, said in an interview in Tokyo. The company has completed plants this year in the U.S., Brazil, India and Germany. Sany will likely miss its goal of selling 30,000 excavators domestically this year.

Demand growth has slowed this year as China’s central bank has raised one-year leading rates three times this year to 6.56 percent to cool inflation and tackle concerns about a potential property-market bubble. Sany’s excavator sales will likely fall short of target as demand has dropped since April, according to the company.





Manitowoc Reports Crane Shipment Delayed

The Manitowoc Company, Inc. reported that due to recently identified supplier delivery issues with certain hydraulic components, the shipment of some crane products will be delayed into the first quarter of 2012. In addition, the company is announcing to the financial community that the International Association of Machinists (“IAM”) Local 516 workers at its Manitowoc Cranes facility in Manitowoc, Wisconsin have been on strike since November 14. The previous contract expired on October 31, 2011. Negotiations held in front of a federal mediator did not result in meaningful progress, and thus management is not certain how long the strike will continue.

Manitowoc expects the negative financial impact of the component delivery matters, coupled with the IAM strike, corresponding layoffs, and contingency plans, to negatively affect fourth-quarter crane sales and operating earnings by approximately $35 million (€27 million) and $10 million (€7.6 million), respectively. In addition, the timing of cash collections due to these production disruptions and inefficiencies is expected to result in the company’s debt reduction being near or below the low end of its previously announced $150 to $200 million (€115 to €153 million) target range.

As an update regarding customer order activity, Manitowoc disclosed that order flow remained at levels consistent with the rate of the prior four quarters. Glen E. Tellock, Manitowoc’s chairman and chief executive officer commented, “With the exception of the crawler crane product line that has remained relatively soft, we are pleased with the order activity in other product lines in most markets. In addition, our Foodservice business continues to perform well, and in accordance with the guidance we provided in our third-quarter earnings announcement.”

Rostelmash Plans Production Increase

Russia’s largest producer of agricultural equipment Rostselmash plans to increase the production of its agricultural machinery by 10% on the year to roughly 4,500 units in 2012. Rostselmash is a unit of the Novoye Sodruzhestvo (New Commonwealth) industrial group. Rostselmash manufactured 3,300 combines in 2010 and plans to increase its production to 4,100 combines in 2011. The company is currently designing advanced model combines, which are to be introduced to the market in 2015.

Zeppelin To Make Huge Fleet Investments In 2012

MVS Zeppelin, the Cat Rental Store in Germany, said it remains committed to expanding its rental service business model and will increase the proportion of non-Cat ‘allied equipment’ in its fleet in the coming years. The company plans to add approximately 1,000 new machines in 2012, following similar levels of investment last year. More than 70% of the 2012 spending will be for new Caterpillar machines, including earthmoving and road building units equipped with GPS systems.

Klaus Kögel, the company’s recently appointed marketing manager, said MVS Zeppelin remained committed to its program of renting non-Cat, allied equipment and that the proportion of non-Cat equipment could rise from 40% to 50% of the total in the coming years. “We will increase the allied equipment business, and not reduce the Cat business”, he said.




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MVS Zeppelin remains optimistic about growth opportunities in the German market. “When it comes to current market conditions we see the actual situation is not so bad in Germany”, said Mr Kögel, “2011 was the most successful year we ever had, and we are not fearful of a bad economic situation, even if the expectation for 2012 is a little bit cautious.”

He said MVS saw double digit growth in revenues this year “and a very pleasing profit improvement.”

MVS Zeppelin, which is part of the rental business unit of Caterpillar dealer Zeppelin, is optimistic because of public investments in infrastructure totaling €24 billion over the next three years. In addition, Mr Kögel said MVS Zeppelin was moving into the German energy market, where there is much investment planned. He added that there were also signs of a more general structural shift towards rental, prompted by balance sheet issues and the difficulties in raising capital.

Elswhere in Europe, some Cat dealers have retreated from running separately run pure rental service companies. Finning in the UK sold Hewden 18 months ago; Bergerat Monnoyeur in France has just sold its BM Location business; and Cat dealers Barloworld MERA in Spain and Pon Equipment in the Netherlands and Scandinavia have been forced by financial conditions to scale back their rental operations.




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CALENDAR OF EVENTSDates Name Description Venue Contact Details

2012

JANUARY 24 -27 World Of Concrete Construction Las Vegas, Nevada, U.S. www.worldofconcrete.com

MARCH 13 – 15 World of Asphalt Asphalt, Highway & Maintenance Charlotte, North Carolina www.worldofconcrete.com

APRIL 16- 21 Intermat 2012 Construction Equipment Paris, France www.intermat.fr

SEPTEMBER 20 Europlaform Access Equipment Edinburg, Scotland www.europlatform.info

NOVEMBER 27 – 30 Bauma China 2012 Construction Machinery Shanghai, China www.bauma-china.com

2013

JANUARY AG Connect Expo 2013 Agricultural Orlando, FL, U.S. www.agconnect.com

FEBRUARY 5 – 8 bCIndia Building, Construction & Mining

Mumbai, India www.bcindia.com

APRIL 15 – 21 Bauma 2013 Construction & Mining Munich, Germany www.bauma.de

MAY 14 -16 PlantWorx Construction , tools and accessories

Stoneleigh Park, Warwickshire, U.K. www.plantworx.co.uk

SEPT. Bauma Africa Construction Machinery

Johannesburg, South Africa

SEPT. 24-26 MINExpo Mining exposition Las Vegas, Nevada www.minexpo.com

2014

MARCH 4 - 8 ConExpo-Con/Agg Construction Machinery Las Vegas, Nevada www.conexpoconagg.com

Samoter Earth Moving & Building Machinery

Verona, Italy Tel: 045 829 8111 www.samoter.it

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VOLUME 2.12 OUTLOOK · machinery OUTLOOK EUROPE ® Peter Dahlsten, senior vice president Ramirent...

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