Terex Corporation (NYSE:TEX), a diversified global manufacturer, and GAZ Group, a manufacturer of commercial vehicles in Russia, announced today that they have entered into an agreement to form a joint venture company for the manufacture of construction and road building equipment in Russia.
Under the terms of the agreement, the joint venture will manufacture, market and sell certain Terex and all GAZ Group construction and road building products in Russia, as well as distribute construction and road building products manufactured by Terex and exported into Russia.
In addition, the joint venture will also sell certain construction and road building products of GAZ Group for export. Exact financial details of the JV were not available.
The joint venture arrangement is expected to allow access to relevant technology and know-how that will help to upgrade the current product portfolio of the GAZ Group Construction Equipment division. The joint venture is expected to be operational in early 2012.
The companies said that the JV will announce the specific Terex designed products that will be initially introduced and producing in the near future as decisions are finalised. Currently, production is planned for GAZ Group's Tvex Excavator, Bryansk Arsenal, Chelyabinsk Construction and Road Machines and Zavolzhsky Crawler Vehicle plants.