20.11.2008

Kato pulls out of Euro Rigo

Kato Works the Japanese crane manufacturer has issued a short statement that says it is dissolving its Italian subsidiary Euro Rigo.

The business was originally a joint venture between Kato and Rigo, with Kato owning 80 percent of the equity. The statement, refers to Kato owning 99.4 percent of the business.
Click here to see Kato in European move - Jan 2007
The announcement follows on the heels of the company’s half year results which show revenues of ¥31.3 billion ($323 million), an increase on the same period last year of 10.9 percent.

Operating income for the period rose 11.2 percent to ¥2.1 billion, ($21.7 million) while net income fell 3.7 percent to ¥1.23 billion ($ 12.7 million). The company also reduced its full year forecasts from ¥62 billion (641 million) to ¥61.5 billion (635 million).

What happens now with the Rigo plant, located in Domegliara near Verona or the product line, is far from clear, the company has been shipping product, and has only just delivered its first RTT1305 to a customer in Dubai..
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A EuroRigo RTT1305

The statment referred to a March 2009 date for closure of the operation at a cost of ¥3 billion ($31.5 million). No one at the Verona plant was prepare to comment on the annpouncement apart from ackowledging that it was issued to the stock market in Japan.

Daniel Rigo cut all ties with the business in March and now sells spare parts for Rigo cranes and trades in used cranes from all manufacturers. He was unaware of any developments at EuroRigo.

Vertikal Comment

The relationship between very Japanese Kato and very Italian Rigo was always going to be interesting. This was Kato’s second attempt at establishing a European base in Italy, the company had an earlier joint venture with Marchetti which ceased after a relatively short period.

Kato cannot seem to make up its mind on what to do in Europe, while many of its previous customers are very clear indeed. It needs to start selling its excellent city and truck cranes in Europe again. The company’s products have an excellent reputation and thanks to the efforts of Kranlyft in providing spare parts and support while the company dithers over its plans for the region, customers have been looked after and ‘kept on board’.

Hopefully we will see the company make a simpler return to the European marker in the near future, although we are not holding our breath.