Ferronordic AB Expands Cooperation with Sandvik in Russia
October 25, 2021 at 08:45 am EDT
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Ferronordic AB (publ) has entered into an agreement to become the distributor of Sandvik stationary crushing and screening equipment in Russia. Under the agreement, Ferronordic will be responsible for sales, service and repair of Sandvik's stationary crushing equipment throughout the country. Over time, Ferronordic expects that sales related to the new products may represent approx. 7% of its revenue in Russia. Sandvik Rock Processing Solutions, a business area within Sandvik, has appointed Ferronordic its authorized distributor for its stationary crushing and screening equipment in Russia. As a result, Ferronordic will become responsible for the sales and service of Sandvik's stationary crushers and screens in all of Russia in the construction segment and parts of the country in the mining segment. The agreement follows the appointment of Ferronordic as distributor of Sandvik mobile crushing and screening equipment in Russia in March 2021 and expands the partnership between Ferronordic and Sandvik Rock Processing Solutions in Russia. Sandvik's portfolio of stationary crushers and screens includes jaw crushers, cone crushers, hybrid crushers, feeders and screens. Areas of application for Sandvik's crushers and screens mainly include mines and quarries. Over time, Ferronordic expects that equipment- and aftermarket sales related to Sandvik's mobile and stationary crushers and screens may represent approx. 5% and 7% respectively of its revenue in Russia. Gross margin and working capital requirements are expected to be comparable to Ferronordic's existing product offering in Russia/CIS. The agreement has been signed and takes effect on 1 January 2022. Ferronordic will start marketing and selling the new product range from January 2022.
Ferronordic AB is a Sweden-based company engaged in sales and distribution of construction equipment. It operates as an authorized dealer of Volvo Construction Equipment, Renault trucks and Volvo CE. Additionally, it distributes Volvo and Renault Trucks, Volvo Penta, among others. Through its business segment, Equipment Distribution, the Company offers sale and rental of new and used machines and other equipment, contracting services, as well as aftermarket support (sales of parts and service). The Company distributes excavators, backhoe loaders, dump trucks, pipelayers, forestry machines, bulldozers and gensets. The Company provides its services to other companies in the Quarries and aggregates, mining, road construction, transport and logistic and general construction industries