Advanced factory crane kits are heading to the UAE following the Dubai<br> Cranes-Street deal
European crane manufacturers have in recent weeks signed three major agreements individually or through a joint venture, enhancing their involvement in the Gulf region at a time of renewed construction activity. Wolffkran Arabia, a JV between Dubai-based Kanoo Group and German crane manufacturer Wolffkran, will supply Habtoor Leighton Group (HLG) with machines as part of a five-year purchasing and rental deal. The other two manufacturers involved in deals are Konecranes of Finland and the UK’s Street. Martin Kirby, managing director, Wolffkran Arabia, said the deal with HLG included tower crane supply and installation, plant hire and disposal of crane stock. Wolffkran Arabia is initially supplying five cranes to the construction giant and the hire and purchasing alliance ensures that it gets first option on future tower crane requirements for HLG. Wolffkran Arabia is also supporting HLG with the removal of older tower cranes from HLG’s fleet. This holistic approach to updating the HLG tower crane fleet, and the flexibility and support from Wolffkran were key features that attracted HLG to form the alliance, the Wolffkran joint venture said. Kirby revealed that two Wolff 7532 cross 16 - tonne tower cranes had already joined a fleet of six rental cranes working on the new Mafraq Hospital in Abu Dhabi, which began construction earlier this year. He predicted that the deal could lead to other opportunities with contractors in the region, especially in Saudi Arabia. 'We are currently restructuring our business and expanding it into various GCC countries and continue to see good utilisation rates despite the difficult trading conditions prevailing,' he said. 'As part of our strategy we have started to present and negotiate supply and purchase alliances with some of the major contractors in the region, who are now recognising the quality and service and support that quality equipment can offer. 'We are now seeing a marked attitude change and an appetite for utilising rental business with pedigree and the support network required by offering this business model to our customers. 'As part of this alliance we are offering to assist in offloading some of our clients assets, which are either old or of poor quality. This can release funds and cash flow for contractors to take on rental of cranes for future demands.' Present at the signing were Dr Peter Schiefer, managing director, Wolffkran, Germany, Bob Curtis, CEO, Kanoo Group, and Laurie Voyer, CEO, HLG. Saudi Cranes acquired The Konecranes deal involved its 100 per cent acquisition of the Saudi crane manufacturer Saudi Cranes & Steel Works Factory Company Ltd in Jubail Industrial City, Saudi Arabia. Saudi Cranes has as its core business the design, manufacture and sale of industrial cranes. The company previously had a licence agreement with Konecranes and its net sales in 2010 were approximately 17 million euros. The value of the acquisition is not disclosed. The new owners say Saudi Cranes enjoys an excellent reputation in Saudi Arabia and that its customers are mainly in the oil, gas and petrochemical industries, steel plants, railways, workshops, power plants and other process industries on the Arabian Peninsula. As a result of strong growth in recent years, Saudi Cranes’ manufacturing plant was expanded at the end of 2008 in accordance with specifications from Konecranes and is now well-equipped to serve Saudi Cranes’ customers, the European owner said. 'The acquisition of Saudi Cranes will give Konecranes the opportunity to strengthen its position in the important Saudi Arabian market, which is witnessing significant growth in major industries,' said Pierre Boyer, senior vice president, Konecranes. 'Thousands of overhead cranes have been sold in the Kingdom of Saudi Arabia to date. These form an excellent base for establishing and developing services to the Saudi Arabian market.' (From left) Schiefer, Curtis and Voyer Saudi Cranes’ previous owner is Sheikh Saad Al Issa. The company’s current management will continue working in the company. Dubai Cranes-Street deal In the other pact, the UK’s Street Crane Company will make available to Dubai Cranes advanced design factory cranes on short lead times. Dubai Crane will hold a substantial stock of Street’s crane kits that will be used with locally fabricated structural components to meet lifting needs of up to 300 tonnes. Street Crane will share technical expertise with Dubai Crane so that major crane structures such as gantries and crane beams can be fabricated to UK and European standards in Dubai. These structures will then be mated to electro-mechanical systems such as carriages, hoists, controls and electrical gear supplied by Street Crane from the UK to create advanced world-class cranes. Dubai Crane is one of many subsidiaries of Dubai Investments PJSC a public company with capital of a total asset value of Dh14.74 billion ($4 billion) and diverse interests. The 47 companies in the Dubai Investments portfolio span activities such as building, development, glass, technology, plastics, pharmaceuticals and food. The UK’s largest factory crane manufacturer, Street Crane operates globally via a network of over 60 high-quality local trading partners. General manager at Dubai Cranes Andew Kay explained: 'Industrial development in the UAE is creating huge demand for high-specification industrial cranes. This is especially true in the business cluster based on the Kalifah Port and expanding aluminium industries. The Dubai Crane service package covers everything from the initial survey and evaluation of handling requirements, through the design and installation of the crane, to the complete support and service of the equipment throughout its operational life.' Stock holding by Dubai Crane will facilitate prompt delivery for main market cranes of single or double girder construction up to 25 tonnes safe working load and up to 30 m span. In addition, technical collaboration allows the companies to undertake major complex infrastructure projects. A recent collaboration was a new facility for Emirates Aluminium (Emal) where more than 15 special overhead cranes were installed as part of the multimillion-dollar investment. Cranes with capacities from three to 50 tonnes were installed with several cranes having auxiliary hoists to assist in the tipping of ladles. All the cranes were designed and engineered for intensive 24/7 operation in a harsh environment. Speaking for Street Crane, managing director Andrew Pimblett commented. 'We are delighted to be working with such a high-profile and well-resourced local partner. Local fabrication of major crane elements not only provides a more responsive service for end users, but also creates value in the local economy, so that this is a win-win for all the project partners.'
at the signing of the Wolffkran
Arabia-HLG deal
