|By PR Newswire||
|April 28, 2014 03:15 AM EDT||
BASILDON, United Kingdom, April 28, 2014 /PRNewswire/ -- CNH Industrial N.V. has agreed to enter into a new licensing agreement with Sumitomo (S.H.I.) Construction Machinery Co. Ltd., a wholly owned subsidiary of Sumitomo Heavy Industries, Ltd.
Under this new technology license and component supply agreement, CNH Industrial will manufacture Sumitomo designed crawler excavators (models ranging from 13 to 35 tonnes) at designated plants within its manufacturing network. Start of production of the new localized models is planned for mid-2016.
This agreement also extends the existing Global Product Supply (OEM) agreement between CNH Industrial and Sumitomo (S.H.I.) Construction Machinery for the sourcing of excavators from Sumitomo plants.
Sumitomo has been a supplier to the CNH Industrial global distribution network since 1992 for models ranging from 7 to 80 tonnes. This next step will further strengthen the partnership between the two companies.
"With this new agreement CNH Industrial has completed the transition from its previous dual source excavator strategy to a single global partner. 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," said Richard Tobin, CNH Industrial CEO and Brand President of Case and New Holland Construction. "We are excited to embark on this new phase of our partnership with Sumitomo (S.H.I.) Construction Machinery as it secures our supply position in this important product category and increases our manufacturing flexibility to meet the demands of our customers."
"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," said Mikio Ide, President of Sumitomo (S.H.I.) Construction Machinery.
CNH Industrial N.V. (NYSE: CNHI /MI: CNHI) is a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. Each of the individual brands belonging to the Group is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines and transmissions. More information can be found on the corporate website: www.cnhindustrial.com
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SOURCE CNH Industrial N.V.