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

  • Major success for bC India despite challenging economic conditions
    April 4, 2013
    Despite challenging times, the second bC India construction equipment show proved a success Mumbai, India’s most populous city and the fourth most populous in the world, has again delivered a successful bC India. The bauma/ConExpo international trade fair for construction machinery, building material machines, mining machines and construction vehicles, was held at the Bandra Kurla Complex, and impressively strengthened its position in the Indian market despite the challenging situation in the industry. Duri
    Read More
  • Growth in asphalt testing equipment
    February 21, 2012
    The building of Italy's highway system just over four decades ago led to the formation of a testing equipment company. It is now among the world leaders. Just over 40 years ago a big surge in construction of the Italian highway system presented an opportunity to a team of local entrepreneurs.
    Read More
  • How Hitex changed its products to meet the demands of India’s roads
    December 7, 2016
    The Indian Government is keen to embrace new technologies and ideas from overseas but as Hitex International discovered, Indian roads need very special products - Kristina Smith reports
    Read More
  • Sany and Palfinger finalise and sign new mutual shareholdings deal
    December 11, 2013
    Chinese construction equipment manufacturing giant Sany and leading innovative lifting solution manufacturer Palfinger have finalised and signed contracts for the expansion of their mutual shareholdings. The move comes after an agreement in principle to extend their strategic partnership was reached by the two construction groups at the end of September 2013. Herbert Ortner, CEO of Palfinger, headquartered in Salzburg, Austria said, “During the past few weeks we have discussed the details of the capital i
    Read More

Highlighted Content