Konecranes to build port cranes in USA

Konecranes wide span ship to shore crane. Photo: Konecranes

Finnish crane maker Konecranes is establishing the necessary supplier network and infrastructure to begin building port cranes in the USA.

The move follows US President Joe Biden’s introduction in mid-May of 25 per cent tariffs on imports of such cranes and similar rates on other goods from China.

Konecranes has developed a still-expanding network of steel structure providers and subcontractors that fit the criteria of the Build America Buy America (BABA) Act of 2021.

As part of the Infrastructure Investment and Jobs Act, BABA “established a domestic content procurement preference for all Federal financial assistance obligated for infrastructure projects after May 14, 2022. The domestic content procurement preference requires that all iron, steel, manufactured products, and construction materials used in covered infrastructure projects are produced in the United States,” according to the US Government Office of Acquisition Management.

In a Whitehouse Briefing Room statement the move was described as “a combination of Finnish expertise and American industrial capacity.”

Domestic manufacturing capability

Konecranes’ 1,000th RTG crane was painted with a special US flag design to mark the occasion. Photo: Konecranes

Konecranes said it can now manufacture a full range of domestic manufacturing-compliant port cranes in the USA, including ship to shore (STS) container cranes. STS cranes are the type most heavily impacted by the tariffs. By far the majority of new STS cranes in the USA have been built in China for many years.

Konecranes estimates that every STS crane built in the United States will require production of 1,500 US tons of US-made steel and more than 100,000 labour-hours for the whole value chain.

Several US port customers have provided “initial indications of interest,” Konecranes said. Further growth in the supply network is forecast in Ohio, Virginia and Wisconsin. The lead time on STS cranes can be several years, to produce and deliver them, so it is a long-term development.

Upgrade and improve

The company can also upgrade existing US port cranes, adding the latest technology and cybersecurity features. Such security has been a high-level concern surrounding Chinese cranes handling goods in and out of the USA.

Konecranes has been in the USA for decades. It already has three crane factories employing 2,200 people, plus more than 60 branches around the country.