Japanese construction equipment manufacturer Kato Works has revealed details regarding its capital investment and shareholding ratio in a new joint venture (JV) company to be established in India with Action Construction Equipment (ACE).
The board of directors resolved the specifics at a meeting held on 13 February 2026.
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Kato Works will invest Rs1.0bn ($11m) into the joint entity, which will focus on manufacturing heavy cranes for both domestic and international markets.
The total capital of the new enterprise, named ACE KATO, will be Rs2.0bn, split evenly between Kato Works and ACE, with each holding a 50% stake.
The JV is scheduled to begin operations in April 2026, following the execution of investment and shareholder agreements with ACE in March 2026.
The base of operations will be located in the Indian state of Haryana.
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By GlobalDataProduction at the facility will include truck cranes, crawler cranes, and rough terrain cranes, targeting demand across India as well as export markets.
Kato Works stated that one of its main strategies under its three-year mid-term management plan, which starts from the fiscal year ending 31 March 2026, is to drive growth through effective investment and expand overseas sales.
Establishing a business presence in India aligns with this approach, given the scale of demand in the region.
The company also plans to transfer its proprietary technologies to the joint venture “to enhance product competitiveness in terms of both performance and cost, and to expand into new markets such as Asia and the Middle East”.
Kato Works further commented that it would continue preparations for launching the JV after signing today’s investment agreement.
“Following the signing of the investment agreement resolved today, we will proceed with preparations for establishing the joint venture company and strive to build a solid business foundation to ensure the steady growth of this initiative as a key driver of our medium- to long-term earnings,” the company stated.
Kato Works anticipates that the impact on its consolidated financial results will be minimal. However, the company will disclose any significant effects as needed. Further information about the joint venture will be released as discussions with ACE progress.
