Palfinger has acquired a controlling 60 percent interest in the Russian forestry and recycling loader crane company PM-Group Lifting Machine.
A further 20 percent of the equity will be purchased by Steindl Forsttechnik with both purchases subject to Russian government approval.
PM-Group Lifting Machine comprises two Russian crane manufacturers Velmash and Solombalsky Engineering Works, both of which produce and distribute a broad range of timber and recycling cranes. The group also operates in the wider loader crane market and offers stationary cranes, container loading systems and custom solutions. The group has an 85 strong network of dealers, service centres and regional offices. It currently generates revenues of around €50 million and employs 1,400.
Palfinger says that the local market for timber and recycling cranes is dominated by a few local players, with only a small share of the market interested in higher-priced more sophisticated imported products such as Palfinger’s Epsilon range. It also sees potential for the PM products in India and China.
Palfinger acquired Russian general loader crane manufacturer Inman (Ischimbajskie Neftianiye Manipuliatory, JSC) in mid 2011 as part of its plans to add diversification to its strong western European base - see: Palfinger buys Russian
Palfinger chief executive Herbert Ortner said: “The acquisition of PM-Group Lifting Machine marks a significant expansion of Palfinger’s and the Steindl family’s activities in Russia. Together we will be able to offer our customers a broad range of products and enhanced service, primarily in the field of timber and recycling cranes.This transaction shows that throughout the entire year 2013 we have seized numerous opportunities to grow. Our priority for 2014 will be the consolidation of the Group.”