Terex and Gaz Group have announced plans to form a joint venture company that will manufacture construction and road building equipment in Russia. The company will manufacture and market Gaz's entire construction equipment portfolio, along with certain Terex products in the Russian market. The joint venture will also distribute imported Terex construction and road building equipment in Russia as well as selling some of the Gaz portfolio it manufactures on export markets.
The Gaz Group will provide manufacturing facilities and human resources to the venture, along with access to its construction equipment dealer network. Terex's input will be in the form of technology and know-how that will help upgrade the Gaz construction equipment portfolio. The joint venture is expected to be operational early next year.
Oleg Deripaska, the CEO of Basic Element, a holding company that owns a majority stake in Gaz 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."
Terex chairman and CEO Ron DeFeo added, "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 oppo0rtunity for both our companies."
The specific Terex models that the joint venture will produce are yet to be decided.