30.05.2011

Terex signs JV in Russia

Terex has agreed the formation of a Joint Venture company in Russia with the GAZ Group, part of Oleg Deripaska's Basic Element. to build construction and road building equipment in Russia. The news was released this morning via a joint statement circulated by GAZ.

The joint venture will manufacture, market and sell certain Terex and all GAZ construction and road building products in Russia, as well as import and distribute Terex products in Russia. The joint venture will also export certain GAZ group products through the Terex distributor network.

GAZ will provide manufacturing facilities and human resources, as well as access to its dealer network. The arrangement will allow access to relevant technology and know-how to help upgrade the current Gaz range of products.

The joint venture is expected to be operational in early 2012, the specific Terex products that will be included in the joint venture will be announced in the near future, as decisions are finalised. Production is planned for GAZ Group's Tvex Excavator, Bryansk Arsenal, Chelyabinsk Construction and Road Machines, and Zavolzhsky Crawler Vehicle plants.

Gaz (Gorkovsky Avtomobilny Zavod) was founded in 1929 as a joint venture between the Soviet Union and Ford Motor company to produce cars in Russia. Today the company produces a wide range of vehicles including cars, trucks and busses and is Russia’s largest automotive group. Its construction and road building division produces, pavers, bulldozer, trailers, front-end loaders, excavators, graders and front end loaders.

Deripaska said: “I welcome this joint venture between GAZ group and Terex, which expands and upgrades the road construction equipment product line offered to Russian and international customers and puts both companies in a strong position to take advantage of Russia's booming infrastructure building market. Russia has a lot of roads to build, and we shall be there and ready to deliver.”

Terex chief executive Ron DeFeo added: “From our viewpoint, the opportunity for Terex to participate in helping to build vital infrastructure in Russia and other markets, as we better serve the equipment needs of both existing and new customers is truly exciting. The combined product offerings, expanded geographic reach and extensive manufacturing capacity in the Russian Federation offer considerable opportunity for both our companies.”

Gaz president Bo Andersson said: “Creation of a JV with Terex will make it possible to significantly extend our model range, master modern technologies and cooperate on strategic procurement opportunities. It will give us good opportunities to enter new export markets as well.”
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