CNH Industrial has agreed to enter into a new licensing agreement with Sumitomo Construction Machinery, a wholly-owned subsidiary of Sumitomo Heavy Industries.
CNH Industrial has agreed to enter into a new licensing agreement with Sumitomo Construction Machinery, a wholly-owned subsidiary of Sumitomo Heavy Industries.
Under this new technology licence and component supply agreement, CNH Industrial will manufacture Sumitomo designed crawler excavator models ranging from 13 to 35tonnes at designated plants within its manufacturing network. Start of production of the new localised models is planned for mid-2016.
The agreement also extends the existing global product supply (OEM) agreement between CNH Industrial and Sumitomo 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 7-80tonnes, and the next step will further strengthen the partnership between the two companies.
“With this new agreement CNH Industrial have completed the transition from their previous dual-source excavator strategy to a single global partner,” says Richard Tobin, CNH Industrial CEO and brand president of Case and New Holland Construction.
“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.
‘We are excited to embark on this new phase of our partnership with Sumitomo 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.”
Mikio Ide, president of Sumitomo Construction Machinery, says: “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.”
