Cargotec and Konecranes announce planned operating model and leadership team for the Future Company

The merger between Cargotec and Konecranes is expected to take place by the end of H1/2022, and the both companies have announced the planned operating model and leadership team of the Future Company. “The planned high-level operating model of the Future Company is the result of months of integration planning work and the benchmarking of best practices across various industries, and the selection of the planned leadership team is the result of a rigorous selection process. Today marks a major step forward on the road to creating a global leader in sustainable material flow, and I’m confident we will have the right leaders to unlock that potential,” said selected Future Company President and CEO Mika Vehviläinen.    

The Future Company’s designed operating model would be a customer-centric model as the planned four independent businesses would each serve one clear customer segment: industrial, maritime, ports and roads. After the completion of the merger, the Future Company is planned to consist of the following businesses, with their leaders being members of the Future Company leadership team and reporting to the Future Company President and CEO Mika Vehviläinen. The naming and branding of the planned businesses is part of the integration planning work and is currently ongoing.

Industrial business

The Future Company plans to combine Konecranes’ Service and Industrial Equipment Business Areas to strengthen its position as one of the global lifting leader. This would leverage service and equipment offerings to unlock sales opportunities throughout the lifecycle for industrial customers and support the extended lifetime of sustainable lifting products. This business would be led by Fabio Fiorino, currently Executive Vice President, Business Area Service at Konecranes.

Maritime business

Cargotec’s current MacGregor business would continue to serve shipbuilders, shipowners and operators with a portfolio of products, services and solutions. As part of a larger group, the business would benefit in areas including sustainability, procurement and digital. This business would be led by Leif Byström, currently President, MacGregor at Cargotec. 

Ports business

The Future Company plans to create a new business by combining Cargotec’s Kalmar and Konecranes’ Port Solutions to be a true lifecycle partner for port and terminal customers, capturing technology, innovation and scale benefits to deliver end-to-end material handling solutions including equipment, software and services. This business would be led by Michel van Roozendaal, currently President, Kalmar Mobile Solutions at Cargotec.

Roads business

Cargotec’s current Hiab business would continue as one of world’s leading provider of on-road load handling equipment, intelligent services and smart and connected solutions. In the Future Company, the business would also benefit in areas including sustainability, procurement and digital. This business would be led by Scott Phillips, currently President, Hiab at Cargotec.

The planned leadership team would only become effective as of the completion of the merger, which is currently expected to take place by the end of H1/2022. Plans related to the high-level operating model including businesses and business units (including but not limited to the plans to combine two business areas in industrial area and to combine the existing port businesses to create a new business in ports area), group operations, functions, future organization structure and further selections are subject to separate decision-making as well as to various local legal requirements. Until all merger closing conditions are met and the merger is completed, both Cargotec and Konecranes will operate fully separately and independently,