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October, 20. 2005

KCI Konecranes signs agreement for crane production in Poland

KCI Konecranes expands its co-operation with Mostostal Chojnice SA, the leading steel structure producer in Poland. KCI Konecranes and Mostostal Chojnice SA have signed an agreement for contract manufacturing of process cranes intended primarily for the European market.

The expanded co-operation is celebrated today at an Inauguration Ceremony held at the Mostostal Chojnice factory in Poland. Founded in 1973, Mostostal Chojnice SA is a leading polish producer of steel structures. The Mostostal Chojnice factory is in a prime location, in the town of Chojnice, close to Gdynia Port and the German border. The factory has already acted as a back-up manufacturing facility for KCI Konecranes in many projects.

Co-operation with Mostostal Chojnice started with the manufacture of bridge structures and assembly work using KCI Konecranes key technology, components and designs.

"Our co-operation with KCI Konecranes has had highly favourable results. We are very happy to become their long-term partner which enables us to further expand our expertise," says Zbigniew Urbaniec, President, Mostostal Chojnice. "Our position in the industry as a leading supplier of steel structures is further strengthened as a result of this agreement."

In order to secure the production capacity, the Mostostal Chojnice factory has been upgraded with a new production line and machinery supplied by KCI Konecranes. The factory is today equipped for efficient manufacture of demanding process crane applications

"The agreement is in line with our general strategy of improving flexibility in capacity utilisation by building up a network of certified manufacturing partners. We have modular product platforms that allow us to manufacture either in our own or partners' facilities depending on the actual market situation", says Mikko Uhari, President, Special Cranes, KCI Konecranes. "The agreement also enables us to continue serving the European market in an efficient way".

About Mostostal Chojnice SA:
Mostostal Chojnice SA, part of the KEM Group, was founded in 1973 and is a leading polish producer of steel structures: welded, bolted and also erection company. Mostostal Chojnice is specialized in many production fields, fabricating bridge structures, viaducts, gangways, pipe racks, towers and masts, tanks for liquids and silos. Mostostal Chojnice is also the biggest producer in Poland of hatch covers, ramps, equipment for shipping industry. In 2003 Mostostal Chojnice obtained the TÜV Rheinland certificate in accordance with ISO 9001 standards. Mostostal's most famous projects include: Millenium bridge in London, 4th highest broadcasting tower in the world (430 m) and the Roof for Stade de France in Paris.

About KEM Group:
KEM Group is a private company, established in 1991 by Miss and Mr Krawczyk and ranked 284th among the "500 Biggest Polish Companies" for year 2003. The main activities of KEM Group are: steel scrap processing, domestic and export sale (25.000 - 40.000 tonnes per month) and metallurgical products trade (12.000 - 15.000 tonnes per month) furniture production, energy production, general contractors and many more (for example own Recreation Center with ruins of 14th century castle). KEM
Group sales totalled PLN ca 550 million. Headquartered in Dąbrowa Górnicza, the Group has 1000 employees.

About KCI Konecranes:
KCI Konecranes is a world leading engineering group specialising in advanced overhead lifting solutions and maintenance services. KCI Konecranes is the world's leading supplier of heavy-duty cranes for process industries and shipyards. KCI Konecranes is a global supplier of special harbour cranes for bulk materials and containers and of mobile container handling equipment like Reach Stackers and Lift Trucks. In 2004, Group sales totalled EUR 728 million. The Group has 4,900 employees in 35 countries.

For further information:
Mikko Uhari, President, Special Cranes, KCI Konecranes
E-mail: Mikko.uhari@konecranes.com or phone +358-20 427 2500
Andrzej Leczkowski, Managing Director, KCI Konecranes Poland
E-mail: andrzej.leczkowski@konecranes.com or phone: +48-58-320 9085

www.konecranes.com


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