Two joint-venture companies will be established in Russia between Palfinger AG and OJSC Kamaz. One will be for the manufacture of truck bodies and the other for producing hydraulic cylinders, both in the CIS.
Palfinger manufactures hydraulic loader cranes, access platforms and other load handling equipment. Kamaz is Russia’s largest truck producer, ranking 11th in the world for heavy truck manufacturers, Palfinger said. In addition to domestic market sales, Kamaz exports to Asia and Latin America.
The Palfinger Group will hold 49 % and the Kamaz Group 51 % in the joint venture specializing in truck bodies. It will mount loading and handling systems on trucks. In addition to the existing Kamaz dealer network, a separate network of dealers and service centres is planned. The registered office will be in Naberezhnye Chelny, Tatarstan, close to Kamaz headquarters. Its objective is to deliver more than 3,000 truck bodies a year by 2019.
For the cylinder production joint venture Palfinger will acquire a 51 % stake in the existing cylinder production of Kamaz at Neftekamsk in the Bashkortostan region. Palfinger said it will invest in plant modernisation. The annual target is to build 80,000 cylinders for cranes, trucks and building machinery by 2019.
Herbert Ortner, Palfinger Group CEO, said that the foundation of the two joint venture companies is “a very important step in securing and expanding our business in CIS. This region has already become a highly important market for Palfinger and, in line with our strategy, we intend to expand local production and intensify on-site value creation. In Kamaz we have found a flexible and performance-oriented partner for our undertaking.”
Sergei Kogogin, Kamaz general director, said, “Kamaz still remains a reliable player in the market for all its business partners, including international partners. And it is especially important that Palfinger, one of the world’s leading manufacturers of lifting equipment, should believe in long-term relations with Kamaz.”
Closing of both transactions, subject to necessary approvals, is planned for the end of November 2014.