Konecranes Oyj - Company Announcement

KONECRANES ACQUIRES INDIAN WMI CRANES LTD.

KONECRANES PLC  STOCK EXCHANGE RELEASE  October 11, 2010 at 11.00 am

KONECRANES ACQUIRES INDIAN WMI CRANES LTD.

Konecranes has entered into an agreement to acquire the Indian crane company
WMI Cranes Ltd. (“WMI”). The acquisition marks an important step in
strengthening Konecranes' position in the growing Indian crane market. 

The company, which is owned by its Managing Director Mr Gopal Vazirani and his
family, is one of the leading manufacturers of heavy-duty cranes in India. WMI
has an installed base of over 4,000 cranes in India and it has an extensive
sales network throughout the country, which combined with Konecranes' vast
service experience and knowledge creates a solid basis for the future
development of maintenance services in India. The cranes supplied by WMI are
used especially within steel, engineering, general manufacturing, cement,
energy, shipyard and logistics industries. The company has a strong position in
the fast growing Indian steel industry in particular. WMI operates two
production plants, one in Mumbai and one in Jejuri, near Pune, where it has
recently invested in modern manufacturing technology. 

For the year ended March 31, 2010, WMI's net sales amounted to approx. EUR 30
million. WMI has a track record of strong sales growth. The company has an
order book of more than EUR 50 million and its order intake prospects are good.
WMI employs approximately 350 people and additionally contracted workforce of
about 600 persons. 

Konecranes will acquire WMI's shares in two phases. In the first phase
Konecranes will acquire 51 percent of the shares for INR 1,690 million (EUR 28
million). In the second phase, approximately one year later, Konecranes will
purchase the remaining 49 percent of the shares. The sellers are entitled to a
performance linked part of the purchase price and the total maximum price for
100 percent of the shares in WMI can amount to approximately INR 3,600 million
(EUR 60 million). The acquisition is irrevocable. The purchase will be financed
with existing cash reserves. 

” WMI boosts our presence significantly in the fast growing Indian crane
market. Our aim is to further grow the business potential by extending the
offering with technologies developed by Konecranes. The product offerings of
the two companies complement each other very well. Furthermore, the acquisition
of WMI adds India truly into our sourcing and supply network. Finally, WMI
creates an excellent base for building our service business in India, in
addition to our growing current service business, via its vast installed crane
base.” says Pekka Lundmark, President and CEO of Konecranes. 

“Joining the forces of WMI and Konecranes creates a new leader in the
fast-growing Indian crane Industry. Our customers will benefit in terms ofcombined offering of products and technology of both companies and high-quality
service. This will establish a solid foundation for the prosperous future.”
says Gopal Vazirani, Managing Director and main owner of WMI. 

WMI will be consolidated into Konecranes' financial reporting once the
regulatory approvals have been received. The approvals are expected to be
received during the fourth quarter of 2010. The acquisition is expected to have
an immaterial impact on Konecranes' results in 2010. 

For further information on WMI, please also visit: http://www.wmicranes.com


KONECRANES PLC

Miikka Kinnunen
Director, Investor Relations


FURTHER INFORMATION 
Analysts and Investors:
Teo Ottola, CFO, Konecranes Plc, tel. +358 20 427 2040
Miikka Kinnunen, Director, Investor Relations, Konecranes Plc, 
tel. +358 20 427 2050

Press:
Mikael Wegmüller, Vice President, Marketing and Communications, Konecranes Plc,
tel. +358 20 427 2008 


Konecranes is a world-leading group of Lifting Businesses™, serving a broad
range of customers, including manufacturing and process industries, shipyards,
ports and terminals. Konecranes provides productivity-enhancing lifting
solutions as well as services for lifting equipment and machine tools of all
makes. In 2009, Group sales totalled EUR 1,671 million. The Group has 9,600
employees, in 545 locations in 43 countries. Konecranes is listed on NASDAQ OMX
Helsinki Ltd (symbol: KCR1V). 

DISTRIBUTION
NASDAQ OMX Helsinki Ltd
Major media
www.konecranes.com