Effective Jan. 1, 2004, Atlas Copco ended the 30-year distribution agreement Krupp had with Allied in the United States and Canada. Krupp-branded products will now be marketed in North America by the Atlas Copco organization, and Allied has formed a new agreement with Sandvik Tamrock.
Worldwide, most Krupp products were marketed under the Krupp brand. But according to Atlas Copco, Krupp supplied Allied with the hydraulic-hammer mechanisms, and Allied assembled those with its own housing and product packaging, essentially handling all Krupp U.S. and Canadian distribution. That was destined to change when Atlas Copco bought Krupp's hammer line in 2002.
"Given that Atlas Copco has its own established sales network in the U.S. and Canada, an agreement with a separate sales organization to market the same products to the same customers did not logically fit the company model," said Claes Ahrengart, division president of Atlas Copco Construction Tools.
Therefore, the company announced it ended the OEM agreement with Allied effective Jan. 1, 2004, and will be using its own sales organization to market their products.
"This new arrangement will develop a more direct relationship with the dealers and end-users," added Ahrengart.
As a result of that news, Allied Construction Products and Sandvik Tamrock combined their North American demolition-attachment businesses under the Allied banner effective the first of the year.
Premium products from Sandvik are now branded "Rammer by Allied" and will replace the Hy-Ram line. Allied will continue to market the value-oriented AR Series hammers. To its total of approximately 140 distributors that handle its hammer line, Allied added 22 full-line Sandvik distributors.