CNH ends exclusive distribution deal with Kobelco

February 2013, Vol. 68 No. 2

Ten years ago, CNH Global, Burr Ridge, IL, and Kobe Steel, Japan, signed a 10-year deal that limited Kobe’s Kobelco Construction Machinery marketing and sales to the Asia-Pacific region and made CNH the exclusive North American distributor for Kobelco Construction Machinery. The two companies have decided to let that deal expire.

Under the new, non-exclusive licensing and supply agreements, which took effect on Jan. 1, 2013, CNH and Kobelco Construction Machinery are unwinding their joint ownership and equity participations in all the companies formed in connection with their previous alliance and eliminating any geographical exclusivity rights associated with their agreements. CNH will continue to manufacture hydraulic excavators incorporating current Kobelco technology at its Calhoun, GA; San Mauro, Italy; and Belo Horizonte, Brazil, manufacturing facilities and will continue to source select models, including short-radius excavators, from Kobelco in Japan for no less than five years and component parts no less than 10 years.

Kobelco Construction Machinery will market and provide services on its own in North America, Europe, South America, the Middle East and Africa.

Moving forward, CNH will market full-sized excavators featuring Kobelco technology under its New Holland Construction brand and compact excavators under its New Holland Construction and Case Construction Equipment brands.