Russian Machines Corporation and TEREX launch production of backhoe loaders at Tver
Tver, Russia/Westport, CT, 22 May 2012 – Russian Machines Corporation, a part of Oleg Deripaska’s Basic Element, and Terex Corporation (NYSE:TEX) have launched production of backhoe loaders at Tver in the framework of the joint venture.
Under the agreement signed earlier, the new joint venture will enter the market under RM-Terex brand. The joint venture will produce localized TEREX products and the existing construction and road-building equipment model range of Russian Machines inRussia, sell these products, as well as distribute construction equipment manufactured by TEREX Corporation abroad. RM-Terex joint venture will be headed by Alexander Filatov, general director of OJSC Russian Machines, and Joe Krider, Vice-President of Terex.
At the first stage in 2012 the joint venture will invest about $20 million in TEREX products localization in Russia. Further investments are planned in localization of products and components.
At the official launch of the new production facility in Tver, the first Russian-made TLB 815-RM backhoe loader came off the assembly line. This multi-purpose, high-performance equipment can perform many operations in various areas of construction and utilities with high speed, high quality and efficiency. The main competitive advantages of the model include optimal price-quality ratio, good running characteristics, reliable components, excellent parameters of the excavator and loading equipment, comfort and safety of the operator’s cabin.
At the joint venture opening ceremony, the guests also saw the first trial sample of TG 140 motor grader. It is a model of a new generation motor grader developed at Bryansk Arsenal in cooperation with Terex Corporation technical experts. The motor grader has been developed at the best international level and is designed for a big scope of earth-moving and grading operations, construction and road maintenance. A new design of cabin and hood has been developed specifically for this motor grader, and modern layout solutions have been implemented to improve access to units and components.
The joint RM-Terex brand will be introduced for the first time at Construction Equipment and Technologies-2012 international specialized exhibition taking place from 29 May till 2 June2012 inMoscow.
Ronald M. DeFeo, Chairman and Chief Executive Officer, Terex Corporation: “We continue to demonstrate our commitment to the Russian market, with this first product assembled by our JV RM Terex. This machine is the result of a global cooperation:UKdesigned, sourced from top tier suppliers around the world, and assembled inRussia”.
Siegfried Wolf, Chairman of the Board of Directors, OJSC Russian Machines: “In the framework of the joint operations, we intend to consolidate the competitive advantages of the parties, which will enable us to strengthen the companies’ positions in the Russian construction market, to expand the product range and distribution channels. Partnership with one of the undisputed world leaders in construction and road-building equipment industry opens up access to modern technologies, opportunities to upgrade the existing product range and improve product quality for Russian Machines’ plants”.
Alexander Filatov, general director of OJSC Russian Machines, CEO of RM-Terex joint venture: “The primary task of the new joint venture’s management is to ensure synergy between managerial and production competences of the two corporations, to build an affective team, to develop and implement a long-term strategy aimed at gaining leadership and strengthening leading positions in the construction and road-building equipment market”.
Terex Corporation is a diversified global company operating in four business segments: Aerial Work Platforms, Construction, Cranes, and Materials Processing. Terex manufactures a broad range of equipment for various industries: construction, infrastructure, quarrying, mining, transportation, energy, refining and utilities. Terex offers financial products and services to assist in the acquisition of Terex equipment through Terex Financial Services. Further information on Terex is available atwww.terex.com.
About OJSC Russian Machines
Russian Machines is a major Russian diversified holding, comprising industrial and engineering assets in the following industries: automotive industry, automotive component industry, rail industry, aircraft industry, production of special-purpose military vehicles, production of construction and road-building equipment – wheel and crawler excavators, front loaders, motor graders, tracked snow-and-swamp going vehicles under TVEX, ChSDM, Bryansk Arsenal, ZZGT brands. Russian Machines Corporation includes 26 plants located in 14 regions ofRussia. The total headcount of the corporation is over 75,000.