Signing the joint venture agreement between Jebsen & Jessen (SEA) and Mannesmann Demag Fördertechnik, 1986. (From left) R. Franke, CEO Mannesmann Demag Fördertechnik; MH Müller, chairman Mannesmann Demag Fördertechnik; AP Jessen, chairman Jebsen & Jessen (SEA) and PH Hay, board member Mannesmann Demag Fördertechnik.
Since its inception in the early 1970s, the Group’s Material Handling Engineering (MHE) business had acted as agent for German crane manufacturer Demag and by 1986, MHE had assumed market leadership for the material handling business in South East Asia.
To build up further strength, however, both parties started looking into intensifying the relationship. And so, after rounds of discussions and negotiations, on Dec 8, 1986, chairman of what was then known as Mannesmann Demag Fördertechnick, Mr HG Müller, and former chairman Jebsen & Jessen (SEA), the late Mr AP Jessen, signed a joint venture agreement.
The establishment of a joint venture signified one of the most important milestones in MHE’s history and contributed significantly to the company’s continued, sustainable growth and profitability. Today, MHE-Demag is market leader in material handling and the Demag brand is clear market leader in ASEAN for crane components.
“The MHE-Demag joint venture is a very successful company that has provided Demag with a unique market position and customer service,” says Aloysius Rauen, CEO of Demag Cranes AG.
“MHE-Demag is a flagship example of how a 50-50 partnership can build the basis for excellence – benefiting from the respective strength of each partner while at the same time itself contributing back to its parent groups with innovative ideas and strong performance benchmarks,” he continues.
In 2011, MHE-Demag celebrated 25 years as joint venture; in 2012, the Regional Business Unit will celebrate its 40th anniversary, another exceptional milestone.
A joint venture between Jebsen & Jessen (SEA) and Demag Cranes & Components GmbH (Germany), MHE-Demag engineers, manufactures and maintains cranes and other material handling products for a wide variety of industrial applications. Since their establishment in the 1970s, their range of products has expanded to now include explosion proof lifting equipment, warehouse trucks, dock levellers, rail systems, car park systems, electrification systems and building maintenance units. MHE-Demag is organised to serve their customer with a regional network spanning eleven countries and comprising eight factories, 35 service centres and over 1,000 employees.