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CNH, Sumitomo In Excavator Licensing Agreement

Posted on April 30, 2014

CNH Industrial N.V. has announced a new technology licensing and component supply agreement with Sumitomo (S.H.I.) Construction Machinery Co. Ltd. under which CNH will manufacture Sumitomo-designed crawler excavators at designated plants within its manufacturing network.

Start of production of the new localized machines, which will range from 13 to 35 tonnes, is planned for mid-2016.

This agreement also extends the existing Global Product Supply (OEM) agreement between CNH Industrial and Sumitomo (S.H.I.) Construction Machinery, a wholly owned subsidiary of Sumitomo Heavy Industries, Ltd., for the sourcing of excavators from Sumitomo plants.

“With this new agreement CNH Industrial has completed the transition from its previous dual source excavator strategy to a single global partner,” said 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 (S.H.I.) 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.”

Sumitomo has supplied excavators from ranging from 7 to 80 tonnes to the CNH Industrial global distribution network since 1992. This next step is seen as further strengthening the partnership between the two companies.

“Sumitomo and CNH Industrial’s relationship will reach a new stage as both companies pursue synergies through this agreement,” said Mikio Ide, president of Sumitomo (S.H.I.) Construction Machinery. “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.”