King extends earthmoving range

At the same times as King Equipment listed its shares on the Newcastle Stock Exchange in early February, it announced it will market competitively-priced earthmovers in the USA and also increase its product range in Australasia.

Under a new arrangement with China's largest wheeled excavator manufacturer Guizhou Jonyang Machinery Industry Co Ltd (Jonyang Industry), King has negotiated to become the exclusive distributor of its tracked and wheeled excavators in Australia, New Zealand, Papua New Guinea, and the US.

The company has made excavators for more than 30 years, with models ranging from 3.5 to 40t after previously supplying military equipment. The distribution agreement with Jonyang, adds to the exclusive distribution arrangements that Brisbane-based King Equipment already has with other Chinese suppliers for wheel loaders and graders. ( Earthmover , Chinese loaders to arrive in January, December 2004). King Equipment managing director Siegfried Konig, said the company should also benefit from an announced agreement by Caterpillar Inc., to acquire 20% of SEM, one of China's key wheel loader manufacturers and a supplier to King Equipment. Cat has options to purchase the remaining equity after two years. “The quality of Chinese heavy equipment is now being recognised worldwide and Caterpillar's move reinforces this,” Konig said. Caterpillar already employs about 2000 people in the 10 facilities that it operates there, both as joint ventures and wholly-owned businesses.