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Cargotec sells its engineering centre in India and enters into long-term partnership with Citec

CARGOTEC CORPORATION, PRESS RELEASE, 13 JUNE 2014 AT 9 AM (EEST)

Cargotec has entered into a long-term partnership with Citec in India and transferred its local engineering centre in Pune, Cargotec Engineering India (CEI), to Citec. Citec is an international multi-discipline engineering and information management services provider with headquarters in Vaasa, Finland, and sales of about EUR 70 million in 2013. The transaction includes the transfer of Cargotec's current engineering business and its 110 employees from Cargotec to Citec. The parties have agreed not to disclose the transaction value.

Cargotec's engineering centre in Pune has been involved in engineering projects for the global cargo handling industry. The unit in Pune as well as Citec's other global units will provide Cargotec and its businesses Hiab, Kalmar and MacGregor engineering and project management services, as well as technical documentation. The partnership with Citec allows Cargotec to focus on its core businesses in India while utilising competitive engineering services in a more flexible and effective way.

"Cargotec has sought after an engineering partner in India, and Citec's solid experience and track record in working globally from India made the decision straightforward. This partnership allows Cargotec better flexibility and efficiency, while simultaneously offering great career opportunities for our 110 engineers in Pune. Our strategic intent is to continue to grow and strengthen the market position of the Hiab, Kalmar and MacGregor businesses in India," says Olli Isotalo, President, Kalmar at Cargotec.

"This is a significant step for our operations in India, and it also provides great business opportunities elsewhere. We are ready to serve Cargotec proactively according to our strategic intent, with smart engineering solutions and a wide competence," says Martin Strand, CEO, Citec.

Citec has been present in India for ten years, now with more than 530 employees in total with offices in Mumbai, Chennai, Bangalore and Pune. Cargotec employs a total of 315 people in various locations in India after the divestment.

Further information for the press:
Olli Isotalo, President, Kalmar, tel. +358 20 777 4111
Maija Eklöf, Vice President, Marketing and Communications, Kalmar, tel. +358 20 777 4096

Further information for investors:
Paula Liimatta, Director, Investor Relations, tel. +358 20 777 4084

Cargotec shapes the cargo handling industry for the benefit of its customers and shareholders. Cargotec's business areas MacGregor, Kalmar and Hiab are recognised leaders in cargo and load handling solutions around the world. Their global network is positioned close to customers and offers extensive services that ensure a continuous, reliable and sustainable performance according to customers' needs. Cargotec's sales totalled approximately EUR 3.2 billion and it employs approximately 11,000 people. Cargotec's class B shares are quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com