MHE-Demag is expanding its footprint in Asia-Pacific with the acquisition of its sister company Demag Cranes & Components (DCC) Australia. While the proven business processes and service of the industrial crane supplier will be strengthened further, several additional material handling product ranges will be introduced in Australia through this move.
DCC Australia and MHE-Demag have already had a very close relation through the Terex Group, former owners of DCC Australia and the joint venture partner for MHE-Demag. With the acquisition, the two organisations are now even closer together under one roof. Per Magnusson, Regional Managing Director of MHE-Demag welcomes the acquisition with open arms.
“We are very pleased to welcome our new colleagues into the 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. It opens up interesting and competitive business set-ups and also adds a highly competent organisation into our fold, from which we can learn many good practices,” he says.
Bolstering the Asia-Pacific Region
Established 50 years ago, DCC Australia, which is now rebranded to MHE-Demag Australia, is a strong player in the Australian market for industrial cranes and related services. In Australia it 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 work-force.
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 11 factories in eight countries – Indonesia, Singapore, Malaysia, through Thailand, Vietnam and the Philippines and Taiwan.
New Products on the Horizon
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 paired 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 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 various heights 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,” says 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. 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.
Made in Germany And Down Under
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,” says 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,” he adds.
Schilling draws from over 20 years of experience in the material handling business with MHE-Demag and was heading MHE-Demag’s Service Division prior to his new post in Australia.
Handling with Care
MHE-Demag as a group are renowned for strong service and after sales business offerings and will see an even greater emphasis on after sales support in the Australian market. This is highlighted by Vince Di Costanzo, National Service Manager of MHE-Demag Australia.
“The strength of our recertification and refurbishment offering is already known to the local market. Now with extended resources of the greater MHE-Demag group we will significantly increase our capabilities for large scale recertification and refurbishment of material handling equipment,” he says.
MHE-Demag Australia is now part of the closest-knit sales and service network for material handling equipment in Asia-Pacific and can build on the strong performance that made the Demag brand a market leader in Australia.
Image Caption: MHE-Demag Australia's Management Team, from left: Vince Di Costanzo, Klaus Schilling and Rowland Hudd.