Home > MHE-Demag to acquire sister company Demag Cranes & Components

MHE-Demag to acquire sister company Demag Cranes & Components

Supplier News
article image MHE-Demag Australia's Management Team, from left: Vince Di Costanzo, Klaus Schilling and Rowland Hudd

Demag Cranes & Components (DCC) Australia has been acquired by materials handling group MHE-Demag, helping expand its footprint in Asia-Pacific. This acquisition not only strengthens the proven business processes and services of the industrial crane supplier but also presents an opportunity to introduce several additional material handling product ranges in Australia.

The two companies, DCC Australia and MHE-Demag were already connected through the Terex Group, which owned DCC Australia previously, and was also the joint venture partner for MHE-Demag.

Per Magnusson, Regional Managing Director of MHE-Demag comments that the acquisition of DCC Australia will add a sizeable business volume to their group as well as a new market to their portfolio.

Bolstering the Asia-Pacific region

To be rebranded as MHE-Demag Australia, DCC Australia is a strong player in the Australian market for industrial cranes and related services, enjoying a large installed base, healthy brand recognition, and 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. Additionally, more than 130 employees will be added to the currently 1,500-strong MHE-Demag Group workforce while MHE-Demag Australia branches will be added to the network, enabling the Group to serve their customers from over 60 locations throughout the Asia-Pacific region. MHE-Demag Australia’s manufacturing facilities in Sydney, Perth and Brisbane will add up to a group total of eleven factories in eight countries.

New products on the horizon

MHE-Demag Australia will continue to supply the Australian market with high quality standard and engineered overhead cranes, chain hoists, light rail crane systems, drives and crane components from TEREX MHPS coupled with an extensive service network, a full range of spare parts and comprehensive refurbishment and recertification products.

MHE-Demag’s extended range of material handling products opens up new market opportunities for MHE-Demag Australia. Rowland Hudd, National Sales & Marketing Manager of MHE-Demag Australia explains that the addition of products such as lift trucks and loading bay equipment for warehouses, equipment for safe working at height and even automated car parking systems, will help the company greatly improve its offering to the domestic market.

Made in Germany – and Down Under

According to Klaus Schilling, the new Managing Director of MHE-Demag Australia, the prime manufacturing facilities for the Australian market will remain in Sydney, Perth and Brisbane with only key components of the industrial crane ranges being imported from Germany. The company intends to continue its investment to improve their Australian manufacturing facilities even further. Mr Schilling, who worked for over 20 years in the material handling business at MHE-Demag, heading the Service Division prior to his latest post, adds that their strong presence on the ground is a big part of their success in Australia.

Handling with care

As a group renowned for strong service and after sales business offerings, MHE-Demag will continue to be focussed on after sales support in the Australian market. According to Vince Di Costanzo, National Service Manager at MHE-Demag Australia, the strength of their recertification and refurbishment offering is already known to the local market; the expanded MHE-Demag Group will significantly increase their capabilities for large scale recertification and refurbishment of material handling equipment.

MHE-Demag Australia is now part of the close-knit sales and service network for material handling equipment in Asia-Pacific, enabling them to build on the strong performance that made the Demag brand a market leader in Australia. 

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