Kalmar Invests in New Assembly Plant in Shanghai

Press Release Published 17/08/2004

Kalmar Industries, which is a part of the Kone Cargotec division of KONE Corporation, will invest in a new assembly plant in the Shanghai area.

The value of the investment will amount to approximately USD 10 million. The assembly plant will primarily serve the Asian container-handling equipment market, which is the fastest growing area for most Kalmar products.

Shanghai is an optimal location as it has become the most important port area in China and has major expansions planned, including a new port coming into operation in 2005. Kalmar’s new plant will comprise about 7 000 m2 in factory and office buildings on a property of approximately 50 000 m2, and will ensure sufficient capacity to meet the rapidly increasing demand in the Asia-Pacific region.

Assembly is planned to start by end of 2005 with terminal tractors (for short distance container and trailer movement), which are currently produced in the smaller scale operation in Wai Gao Qiao (Shanghai). This plant will be the base for Kalmar’s service and support operations in this important region.

The new plant will also be an important step in Kalmar’s aim to penetrate the Asian Rubber Tired Gantry Crane (RTG) market with Kalmar’s state-of-the-art products. In Europe, where Kalmar’s RTG’s are currently produced, Kalmar has gained a strong market position with it’s GPS-positioning equipped RTG’s.

Sender:

KONE Corporation

Tapio Hakakari
Director, Secretary to the Board of Directors

Minna Mars
Senior Vice President, Corporate Communications & IR

For further information, please contact:
Carl-Gustaf Bergström, President, Kone Cargotec, tel. +358 (0)400 530 887
Christer Granskog, President, Kalmar Industries, tel. +358 (0)400 620 471

KONE is a global service and engineering company that specializes in moving people and goods. It comprises two divisions: KONE Elevators & Escalators and Kone Cargotec. KONE Elevators & Escalators sells, manufactures, installs, maintains and modernizes elevators and escalators, and services automatic building doors. Kone Cargotec supplies products and services to facilitate moving and loading cargo. KONE's B shares are listed on the Helsinki Exchanges.

www.konecorp.com
www.kalmarind.com

2004-08-17 Kalmar Invests in New Assembly Plant in Shanghai

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