ConExpo Russia: Planning starts for 2009

The AEM says that its inaugural trade show in the Russian capital "exceeded expectations." Patrick Smith reports

 The first 5847 CONEXPO Russia, held in the capital Moscow, attracted some 6,000 attendees, according to the organisers. The Association of Equipment Manufactures (676 AEM) said after the inaugural event in September that more than 50% of the 2008 exhibition space had already been sold for the 2009 exposition.

"Leading construction equipment companies from around the world that supported the first ever CONEXPO Russia construction equipment trade show have voiced their support and satisfaction with the show by increasing the amount of exhibit space they are buying for the next CONEXPO Russia," said AEM.

"The next show will attract an additional group of construction professionals from around the world who are looking to improve their businesses through the latest equipment, technology and industry training." Show organisers reported that the inaugural CONEXPO Russia exceeded expectations with more than 230 exhibitors using more than 34,330m² net of exhibit space.

"Participating exhibitors connected with customers from the Russian market and its neighbours, and thousands of leading contractors and other industry professionals conducted business with equipment manufacturers from around the world. The 6,000 registered attendees were able to update their knowledge of business solutions and keep up with the newest construction methods," said the organisers.

The construction industry has been booming in Russia and CONEXPO Russia 2008 was endorsed by a number of leading Russian contractors and manufacturing groups, including the Russian Association of Territorial Highways Department (RADOR), and the Russian Builders Union. The event was also certified by the United States Department of Commerce as a premier international trade event, and department offices around Russia and the former Soviet states recruited delegations to attend.

CONEXPO Russia is based on the ConExpo-Con/Agg trade show model used by AEM (CONEXPO Russia show owner and producer). Education is also an important show component, and CONEXPO Russia 2008 scheduled more than 20 education sessions.

During the event 178 Caterpillar chairman and CEO, Jim Owens, announced that in the last five years company sales in Russia have increased more than 550%, and also unveiled the 320D hydraulic excavator as the first hydraulic excavator assembled at the company's facility in Tosno, Russia, while "in recognition of the importance of the Russian market to the pipeline industry," CONEXPO Russia was the first trade show where Caterpillar displayed its newest pipelayer, the PL61.

Components have been manufactured at Tosno since 2000, and then been exported to other Cat factories in Europe.

"This inaugural event is a testament to the ongoing economic progress occurring in this region. And our involvement is proof of our commitment to customers here and of the importance of Russia to our company," said Owens at a press conference.

"In fact, success here is critical to Caterpillar's overall emerging markets strategy. We see great opportunities to support Russian customers, particularly in mining, oil and gas, and infrastructure development, and to grow our business as a result.

"That's not to say Caterpillar is new to this part of the world. On the contrary: one of our founders, Benjamin Holt, sold tractors in Russia before Caterpillar even existed." Outlining the possibilities in Russia, Ilona Shtrom, Commercial Attaché US Commercial Service, Moscow, said that Russia is a developing economy having made significant progress over past 18 years with an average GDP growth rate of 7.5% a year since 1998 (8.1% in 2007).

She said the best prospects for US exporters were in construction equipment including tractors, bulldozers, mining trucks, mobile cranes, concrete pumps and mixers, excavators, compaction rollers, front loaders and crushers. Building materials (floor and wall coverings, insulation materials, plumbing and electrical products, doors and windows, adhesives

and panels) are also a priority.

Fabrizio Cepollina, responsible for the International Region of 5895 New Holland Construction, said: "CONEXPO Russia will be an opportunity to attract many new customers, and this will allow us to further consolidate the brand in a market that, year after year, keeps on giving us great satisfaction from a commercial standpoint. The fair will also play an important role for the other countries of the CIS area, that are experiencing a significant economic growth and where New Holland Construction has the objective of consolidating its current position." Local company 1261 Chetra also launched its big new T 40 bulldozer, while celebrating 30 years of business of Russia, 255 JCB strengthened its range of JS Auto tracked excavators for the Russian and CIS markets, with the addition of the 29 tonne JS290.

At a conference at CONEXPO Russia, the company also highlighted further investment this year in a new parts centre in Moscow, a 2,500m² facility "which brings dramatic improvements in service back-up to Russian and CIS customers." In the past year seven new service depots have opened including Russian dealer Lonmadi's new 100 million rouble (E2.8 million) service centre for St Petersburg. n