Case-branded excavators engineered by Sumitomo will be manufactured in CNH Industrial plants under a new licensing agreement between CNH and Sumitomo Construction Machinery (SCM). Production of models ranging from 13 to 25 tons is scheduled to begin mid-2016.
Sumitomo has been a supplier to the CNH Industrial global distribution network since 1992 for models ranging from 7 to 80 tons, which includes the CX75C SR and above. Kobelco continues to supply smaller Case-branded excavators, models CX55B and below.
Sumitomo also owns LBX Company, LLC, which imports Link-Belt excavators. Link-Belt and Case brands compete across a range of excavator operating weights.
"The new agreement will not affect LBX’s current sourcing or distribution of Link-Belt excavators,” said Eric Sauvage, president/CEO of LBX. “SCM continues to support the growth of our business and remains committed to building our brand and distribution network throughout the Americas.”
This agreement also extends the existing Global Product Supply (OEM) agreement between CNH Industrial and Sumitomo (S.H.I.) Construction Machinery 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. 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” said Richard Tobin, CNH Industrial CEO and brand president of Case and New Holland Construction. “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."