Terex Corporation is forming a joint venture company with Russian Machines to manufacture construction and road-building equipment in Russia. The new company will produce, market, and sell certain Terex products and all Russian Machines construction and road-building products in Russia, and distribute some products manufactured by Terex and exported to Russia.
“The Russian and CIS remain long-term attractive markets and the demand for fundamental infrastructure upgrade across the region is clear,” stated Terex chairman and CEO Ronald M. DeFeo. “This joint venture allows us to be closer to the customer and provide localized products to an increasingly important customer base.”
The plan to establish a joint venture in Russia was announced by Terex in 2Q 2011, though financial terms have not been detailed. Terex is not alone in eyeing the Russian industrial market: Deere & Co. last year reported a $32-million to expand agricultural equipment manufacturing there, and is increasing its equipment distribution and leasing network in that country.
Connecticut-based Terex has several manufacturing divisions, covering aerial work platforms, construction, cranes, material handling and port solutions, and materials processing. Last year it completed a $1.3-billion acquisition of Demag Cranes, expanding its range of product offerings to include shipping and construction cranes, and increasing its global manufacturing and distribution network.
Russian Machines is a subsidiary of Basic Element Co. that produces rail industry machinery, aircraft OEM, military vehicles, and road construction machinery. It has operations in 14 Russian regions.
“This new venture will help Terex to solidify its goal in becoming the most customer responsive company to meet local infrastructure building needs,” Steve Filipov, president of Terex Developing Markets stated. “In addition, it will bring the distribution partners together from both companies to deliver improvements in product line, quality, support, and service available for our customers in the Russian market.”
