Strengthening its position in the Russian Federation, Volvo Construction Equipment (Volvo CE) has signed an exclusive agreement with Ferronordic Machines that covers the distribution and sale of the company’s products throughout the country.
As Volvo CE’s exclusive dealer in the world’s largest country Ferronordic Machines plans to invest in the region of €100 million in distribution development by the year 2015. This commitment will see a substantial growth in the number of branches, rising from the current 30 outlets today to around 90. The agreement, which is subject to final closing, will give Volvo CE a strong presence across this vast country.
Erik Eberhardson, President & CEO of Ferronordic Machines comments: “This investment makes a clear statement of our commitment to the Russian market – bringing the benefits of Volvo’s products and services to customers across the country.”
Volvo Vostok, the Volvo Group operations in Russia will be unchanged and will retain the import responsibilities for Volvo CE products in Russia, ensuring a smooth logistical chain of machines, attachments and parts into the country. Carl Slotte, General Manager of Volvo CE Russia comments: “This agreement is a significant and exciting development of our activities in Russia, one that gives us a clear and consistent presence across the whole country. Russia is a strategic market for Volvo CE and this development allows us to grow significantly from the strong foundation already in place.”