CNH Industrial and Sumitomo expand partnership

CNH Industrial, the parent of construction equipment brands Case and New Holland, has entered into a new technology license and component supply agreement with Sumitomo Construction Machinery.

CNH said it would start to manufacture localised models of 13 to 35 tonne Sumitomo-designed crawler excavators from mid-2016. This builds on the OEM supply agreement that has been in place between the two companies since 1992, which saw Sumitomo supply CNH with 7 to 80 tonne excavators.

The CNH-manufactured excavators will be sold under both its Case and New Holland brands. The previous supply agreement with Sumitomo was for Case-branded machines only.

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

Richard Tobin, CNH Industrial CEO and brand president of Case and New Holland Construction, said, “We are excited to embark on this new phase of our partnership with Sumitomo 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”.

Mr Tobin added, “With this new agreement CNH Industrial has completed the transition from its previous dual source excavator strategy to a single global partner.”

At the end of 2012, CNH Industrial began to unwind its excavator joint venture, share holdings and distribution agreements with Kobelco in favour of non-exclusive licensing and supply agreements.