Doosan buys Moxy
First publishedon www.AggBusiness.com
Doosan Infracore's European subsidiary, DIEU, has acquired Norwegian ADT builder Moxy. The deal is worth €55 million and forms part of Doosan's plan to become a world leader in the construction equipment market.
Moxy is located in Molde along Norway's west coast and builds a line of ADTs with payloads in the 23-46tonne range. Moxy has some 61 dealers in Europe and North America, in addition to local sales corporations and R&D centres in the US and the UK.
This deal is significant as the world ADT market has grown by an average of 18% over the past three years due to a growth in demand from the extraction industries following the jump in raw material prices. Doosan Infracore plans a five-fold increase in Moxy's annual sales to €250 million/year by 2012 and this will be achieved using Doosan's network of 300-plus dealers in China, Europe and North America.
Doosan expects that the move will allow the firm to provide customers with package deals for full equipment fleets and through this acquisition the company expects to achieve its target of becoming the third largest producer of construction equipment in the world by 2012.
Doosan Infracore senior managing director Kim Dong-chul (head of the Construction Machinery BG) said, "Although Moxy's sales volume is not so large (€54 million in 2007), it owns the source technology for ADTs. Using the takeover, we will push ahead with a positive foray into the mining equipment market, in addition to the heavy construction equipment business."