Kato and ACE to build cranes in India

The ACE Kato joint-venture company brings together Japanese engineering and Indian manufacturing with progressive localisation under one platform Photo: ACE

Japanese crane maker Kato and Action Construction Equipment India have formed a 50:50 joint venture company to manufacture cranes for the Indian and other markets.

Both companies manufacture a range of cranes and construction equipment. ACE said it is the world’s largest pick and carry crane manufacturer.

ACE Kato Pvt. Ltd has a planned investment of around ₹200 crore (US$ 21 million) in an 11 acre (4.5 hectare) manufacturing site in the state of Haryana in north west India. Initially truck, crawler and rough terrain cranes will be built, with more crane types to be added in later phases.

Investment will made be in manufacturing infrastructure, advanced production systems, technology integration and product development, according to ACE.

The new J-V will combine Kato’s global experience of crane engineering, design and technology with “ACE’s manufacturing excellence, operational agility, integrated supply chain, established supplier ecosystem and extensive nationwide sales and after-sales service network,” the company said.

Establishing the J-V company “reinforces our long-term commitment to strengthening India’s construction equipment manufacturing ecosystem,” said Sorab Agarwal, ACE executive director. Photo: ACE

Who does what

Kato will lead in the J-V on product engineering, design and technology. ACE will handle manufacturing, sourcing and localisation. This is a key element where ACE will use its established supplier network to increase the local content. Benefits would include improving manufacturing efficiency, optimised production costs, greater supply chain resilience and shorter lead times.

Sorab Agarwal, Action Construction Equipment Limited executive director, said, “ACE Kato Pvt. Ltd. marks a defining milestone in ACE’s growth journey and reinforces our long-term commitment to strengthening India’s construction equipment manufacturing ecosystem.

“For more than three decades, ACE has been at the forefront of indigenous manufacturing and has built a strong foundation through engineering excellence, operational capabilities and customer reach. By partnering with Kato, we are combining globally proven Japanese technology with India’s manufacturing strengths to create a world-class platform for high-capacity crane manufacturing.”

For his part Tomoyasu Kato, Kato Works Co., Ltd. director, said, “ACE has established itself as one of India’s most respected construction equipment manufacturers with strong manufacturing capabilities, a robust supplier ecosystem and an extensive market presence. Through ACE Kato Pvt. Ltd., we are creating an additional manufacturing base within Kato’s global production network while working together to deliver reliable, technologically advanced crane solutions for customers in India and overseas markets.”