ACE and Kato Works Finalize Joint Venture for Heavy-Duty Crane Production

Action Construction Equipment Limited (ACE) and Tokyo-headquartered Kato Works Company Limited have formally announced the launch of their 50:50 joint venture, ACE KATO Private Limited. The new entity will establish a specialized domestic manufacturing footprint focused on the localized production of high-capacity truck cranes, crawler cranes, and rough terrain cranes aimed at both Indian and international infrastructure markets.

The joint venture operates under an equal equity structure and plans to deploy an initial capital investment of approximately Rs 200 crore to construct an 11-acre manufacturing facility in Haryana, earmarked to build advanced assembly infrastructure, integrate specialized production machinery, and support localized product development. The engineering roadmap divides operational responsibilities along core corporate capabilities, with Kato leading product design and proprietary lifting technologies, while ACE manages localized sourcing, supply chain logistics, and heavy manufacturing.

The partnership plans a progressive component localization strategy using ACE’s existing supplier networks to counter international logistics lead times and optimize long-term manufacturing costs without compromising Japanese engineering benchmarks. Initial factory output will concentrate on heavy-duty truck, crawler, and rough terrain crane configurations to serve immediate demands across mining, transport, port, and industrial sectors, with subsequent expansion phases introducing broader machinery portfolios.

Sorab Agarwal, Executive Director of Action Construction Equipment Limited, stated that the initiative is designed around a long-term technology exchange to build a future-ready manufacturing platform capable of addressing evolving lifting parameters. Tomoyasu Kato, Director of Kato Works Company Limited, noted that the facility creates an additional production hub within Kato's global assembly network, leveraging ACE’s extensive market touchpoints.