26
The Russian growth engine
REGIONAL REPORT: CIS
international
construction
november 2013
to re-iterate their support for the equal
treatment of all manufacturers.
At the moment, non-Russian companies
are suffering from the disposal fee the
government imposed in September
2012 – charges which apply to each
wheeled vehicle imported to Russia or
manufactured in Russia, according to
CECE.
CECE and AEB are currently working with Russia’s Ministry
of Trade & Industry with a view to amending the legislation and
developing a more balanced approach.
Huge market
Nevertheless, there is a huge market for construction equipment
in Russia. According to CECE secretary general Ralf Wezel, one
in three tower cranes produced and sold in Europe are currently
going to Russia. “Russia remains one of the growth engines for
our industry,” he said.
Jean-Claude Doucene, sales director for CIS countries at
Manitowoc, echoed this. “Over the past two years we have seen
a growing demand for cranes in Russia. And we expect market
conditions to remain positive,” he said.
Other international construction equipment manufacturers are
also moving to take advantage of the Russian market. Turkey’s
Hidromek, for instance, plans to expand its operations in Russia
this year with a new dealer support and after sales office.
Head of export Mehmet Nazim Barbarosoglu said Russia
represented a huge opportunity for the manufacturer. “There is
an almost endless demand for construction machines,” he said.
Elsewhere, RM-Terex, Terex Construction’s Russian
manufacturing joint venture with Russian Machines, this year
launched four new graders for the local market. Meanwhile, a
joint venture between Palfinger and Sany is also targeting Russia
with cranes developed specifically for the country’s needs.
In addition, Volvo Construction Equipment inaugurated a new
20,660 m
2
excavator factory in Kaluga
earlier this year – a SEK 350 million
(US$ 52 million) investment, and the
manufacturer’s first factory in the country.
Volvo CE head of CIS business Per-Erik
Lindström summed up the company’s
perspective on the Russian market. “We
plan to double our sales in the country by
2015 and the excavator manufacturing in
Kaluga will play a vital role in achieving
those growth ambitions.”
Mr Lindström saidVolvo CE was present
in over 180 countries around the world,
and was used to most kinds of challenges,
particularly in emerging markets.
“One of the biggest challenges in Russia
is the countryside. To efficiently cover
such a wide territory with the dealer
network is a very interesting challenge both for us and for our
dealer.”
Zero tolerance
He also touched on the issues with corruption in the country.
“Volvo CE, being a part of Volvo Group has zero tolerance to
corruption. We have grown from hundred unit business to
thousands of units business in Russia, we have established
industrial presence. We could do it without being involved into
any kind of corruption.
“We will continue to do business in
the same way. If it comes to delays for
importing components – planning is a
key. We have gained good experience
in handling importation and logistics in
Russia during these years.”
It seems clear that Russia will likely
provide substantial prospects for the
construction industry in the coming
years, but it is also likely that international
contractors and manufacturers will have to
work hard to get a slice of the action.
iC
September saw the opening of JCB’s
largest dealer depot in the world
– the £ 6 million (US$ 9.7 million)
Stroykomplekt facility in Ekaterinburg,
Russia, which covers 3,500 m² and has
a showroom for 25 machines.
Volvo CE head of
CIS business Per-
Erik Lindström.
The manufacturer
inaugurated a
new, 20,660 m
2
excavator factory
in Kaluga, Russia,
earlier this year.
Powerscreen’s distributor Kwintmadi-
Lonmadi, has been helping local
contractors fulfil material requirements
in advance of the 2014 Winter Olympics
in Sochi, on the Black Sea coast.
Pictured is a XA400S crusher.
