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RM-Terex is reviewing the results of its first year of operations

04 June 2013
As part of the specialized, international Construction Equipment and Technology 2013 exhibit, which runs from June 4-8, 2013 in Moscow, RM-Terex presented the results of its first year of operations.
 
RM-Terex was founded in May, 2012, in accordance with a previously signed agreement between the Russian Machines corporation and the company Terex to establish a joint venture producing road-construction equipment in Russia. The purpose of creating the joint venture was to produce road-construction equipment manufactured at a high technological level and to expand both Terex's geographical presence as well as the number of products it could offer customers. The primary strategic direction of RM-Terex's development is to create a company that focuses on customers by offering a complete package of services related to road-construction equipment, from the creation and sale of products to keeping ownership costs at a very accessible level.
 
During its first year of operations, the company has strengthened its position in the Russian market and also significantly expanded its customer base. One of the key factors in the company's development is the localization of the production of Terex equipment. In the last year, approximately 600 million rubles were invested in localization. RM-Terex has opened new, modern assembly plants for Terex backhoe loaders and rigid dump trucks in the cities of Tver and Chelyabinsk. In turn, production sites in Bryansk and the Nizhny Novgorod region (the Zavolzhsky Crawler Vehicle Plant) focus on creating export products. At the Bryansk Arsenal plant, serial production has successfully begun of a new generation of Terex TG series motor graders, which are manufactured to match the quality of the best equipment of this type created anywhere in the world. The Zavolzhsky Crawler Vehicle Plant first introduced the export version of the ZZ-3 tracked, all-terrain vehicle for use in snow and swamps. This vehicle has already been certified for the UK market as well as for the countries of the European Union.
 
The company has seen a successful launch to the modernization of its production facilities, which is also a part of its stated strategy. In May 2013, a painting and drying complex began operating at the Tverskoy Excavator plant, painting all of the equipment being manufactured using two-component colors. Construction work is underway at the Bryansk Arsenal plant to build a modern assembly facility, based on the TPS (lean production) system, which should be operating by the third quarter of 2013. The industrial complex will be certified in accordance with CE standards.
 
To improve the transparency of its business, RM-Terex has launched the Dealer Portal project, which includes a plan for a system to accept electronic orders of spare parts. The system is being designed like an Internet store (with a web interface), which works jointly with an internal corporate solution, based on a 1C platform. Implementation of the project will reduce the amount of time spent processing orders, increase the company's partners' awareness of the availability and delivery times for products, and improve the quality of order planning at the facility.
 
In 2012, 30% of the transactions in RM-Terex's product portfolio involved financial services. The RM-Terex Financial Services division was created, which specializes in financing equipment for dealers and end customers. A unique new product called rent-to-buy was developed, which gives customers the opportunity to lease equipment before purchasing it.
 
Alexandr Filatov, the general director of RM-Terex states, "Our goals are ambitious but achievable. By 2016, we plan to create a competitive lineup of equipment, and by localizing production Terex can reach the most promising segments of the Russian road-construction market and acquire a share of at least 10% in Russia. As can be seen based on the initial results of our work, we have successfully begun to move in this direction. Between 2013 and 2017, RM-Terex, along with its parent firm Terex, plans to release ten new products on the Russian market: articulated dump trucks, loading cranes, cold planers, telescopic loaders, skid steer loaders, etc. In 2014 the company plans to sell about 2,500 units of equipment."

Joseph Krider, Co-Managing Director of RM-Terex: «Terex Corporation views the Russian construction and road-building market as having a real potential and its investments in the RM-Terex joint venture as strategically important and well-placed. As of today, RM-Terex is one of the most dynamic businesses of Terex Corporation worldwide. In a comparatively short time we have built a professional team, developed a strong strategy and, most importantly, we have a drive to implement it, which is already reflected in the first results the company has in the market. 

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