Kato Works, ACE set capital contribution terms for Indian JV

Core Viewpoint - Kato Works is establishing a joint venture with Action Construction Equipment in India, focusing on manufacturing heavy cranes to meet both domestic and international demand [1][2][3]. Group 1: Joint Venture Details - Kato Works will invest Rs1.0 billion ($11 million) into the joint venture, named ACE KATO, which has a total capital of Rs2.0 billion, with both companies holding a 50% stake [1][2]. - The joint venture is set to begin operations in April 2026, following the execution of investment and shareholder agreements in March 2026 [2]. - The facility will be located in Haryana, India, and will produce truck cranes, crawler cranes, and rough terrain cranes [2]. Group 2: Strategic Goals - Kato Works aims to drive growth through effective investment and expand overseas sales as part of its three-year mid-term management plan starting from the fiscal year ending March 31, 2026 [3]. - Establishing a presence in India aligns with Kato Works' strategy due to the significant demand in the region [3]. Group 3: Technology and Market Expansion - The company plans to transfer proprietary technologies to the joint venture to enhance product competitiveness and expand into new markets such as Asia and the Middle East [4]. - Kato Works is committed to building a solid business foundation for the joint venture as a key driver of medium- to long-term earnings [5]. Group 4: Financial Impact - Kato Works anticipates that the impact on its consolidated financial results will be minimal, but will disclose any significant effects as necessary [6].