Russia's GAZ Group and Terex agree joint venture

GAZ Group, part of Oleg Deripaska's Basic Element, and Terex Corporation have entered into an agreement to form a joint venture company to manufacture of construction and roadbuilding equipment in Russia.
February 13, 2012 Read time: 2 mins
Terex CEO Ron DeFeo has signed a major manufacturing deal with Russia's GAZ Group

GAZ Group, part of Oleg Deripaska's Basic Element, and 1222 Terex Corporation have entered into an agreement to form a joint venture company to manufacture of construction and roadbuilding equipment in Russia.

Under the agreement the jv will manufacture, market and sell certain Terex and all GAZ Group construction and roadbuilding products in Russia, as well as distribute construction and roadbuilding products manufactured by Terex and exported into Russia. It will also sell certain construction and roadbuilding products of GAZ Group for export.

GAZ Group is the largest manufacturer of commercial vehicles in Russia, with 18 plants in ten regions and among its products are construction and roadbuilding equipment, powertrain and automotive components.  

GAZ Group will provide manufacturing facilities and human resources as well as access to its Construction Equipment Division dealer network.

The joint venture is expected to be operational in early 2012, and Oleg Deripaska, CEO of Basic Element, majority owner of GAZ Group, 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. Russia has a lot of roads to build, and we shall be there and ready to deliver."

Ron DeFeo, chairman and CEO, Terex Corporation, said: "From our viewpoint, 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 opportunity for both our companies."

The joint venture will announce the specific Terex-designed products that will be initially introduced and produced in the near future as decisions are finalised.

Production is planned for GAZ Group's Tvex Excavator, Bryansk Arsenal, Chelyabinsk Construction and Road Machines, and Zavolzhsky Crawler Vehicle Plants.

Earthmoving & soil compaction

For more information on companies in this article

Related Content

  • Strong attendance points to a successful bauma China show
    December 17, 2014
    Even heavy rain showers on the first day of the bauma China exhibition in Shanghai did not dissuade the crowds packing the outside exhibition areas - Mike Woof writes Those firms exhibiting at bauma China 2014 in Shanghai benefited from a strong show that attracted a record attendance of 191,000, an increase of 6% over the 2012 event. A wide array of new equipment was on show from the 3,104 firms exhibiting, an increase of 14% from 2012. There was a strong focus on technology and new engines required for
    Read More
  • Strong attendance points to a successful bauma China show
    December 17, 2014
    Even heavy rain showers on the first day of the bauma China exhibition in Shanghai did not dissuade the crowds packing the outside exhibition areas - Mike Woof writes Those firms exhibiting at bauma China 2014 in Shanghai benefited from a strong show that attracted a record attendance of 191,000, an increase of 6% over the 2012 event. A wide array of new equipment was on show from the 3,104 firms exhibiting, an increase of 14% from 2012. There was a strong focus on technology and new engines required for
    Read More
  • LiuGong is investing in product development and manufacturing
    October 11, 2013
    LiuGong has been investing heavily in manufacturing and product development, as well as building international distribution – vice president David Beatenbough spoke with Mike Woof One of Chinese leading producers of wheeled loaders, LiuGong has an increasingly international flavour. The company has perhaps a larger contingent of North American and European executives and employees working in China than most of its competitors in the country.
    Read More
  • As one of China’s largest construction machinery manufacturers XCMG also has one of the broadest product ranges
    November 13, 2014
    XCMG is developing its presence in the road machinery sector – Mike Woof writes The road machinery division of XCMG is an increasingly important part of the firm’s overall operations and now produces an extensive range of machines to meet customer needs. Guo Chaohui is vice general manager of this segment and said, “Our aim is to become a world class leader of road machinery. We want to introduce the company on the international market and raise the firm’s profile.” XCMG already holds a strong position
    Read More

Highlighted Content