Ferronordic has entered into an agreement to become the distributor of Sandvik mobile crushing and screening equipment in all of Russia. Under the agreement, Ferronordic is responsible for sales, service and repair of Sandvik mobile crushing and screening equipment throughout the country. Over time, Ferronordic expects that sales related to the new products may represent up to 5% of its revenue in Russia.
Sandvik Mobile Crushing and Screening, a division within Sandvik's newly formed business area Rock Processing Solutions, has appointed Ferronordic its distributor throughout Russia for mobile crushers and screens. The product portfolio includes a full range of mobile jaw crushers, cone crushers, impact crushers, scalpers and screens.
Ferronordic is responsible for sales of new mobile crushing equipment throughout Russia, as well as service and repairs, including warranty service, of Sandvik's existing fleet in the country.
Sandvik is a premium brand and one of the leading manufacturers of mobile crushing and screening equipment globally. The products are used in a wide range of applications, such as quarries, mining and recycling. The products are frequently used side-by-side with Ferronordic's existing offering of Volvo CE machines, often by the same customers. Some Sandvik crushers are also equipped with Volvo Penta engines.
Over time, Ferronordic expects that equipment- and aftermarket sales related to the new products may represent up to 5% 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 is effective immediately. Ferronordic will start marketing and selling the new product range from April 2021.
Lars Corneliusson, Ferronordic's CEO, comments: "Sandvik's mobile crushers and screens are highly complementary to our current offering in Russia. Sandvik is a premium brand with premium products. I am very pleased to initiate this strategic cooperation."
Ferronordic is a service and sales company in the areas of construction equipment and trucks. It is the dealer of Volvo Construction Equipment and certain other brands in all of Russia and Kazakhstan, aftermarket partner of Volvo Trucks and Renault Trucks in part of Russia, and dealer of Volvo Trucks and Renault Trucks in part of Germany. The company also offers contracting services where it owns and operates equipment to carry out works for customers. Ferronordic began its operations in 2010 and now has approx. 90 outlets and about 1,400 employees. Ferronordic's vision is to be regarded as the leading service and sales company in its markets. The shares in Ferronordic AB (publ) are listed on Nasdaq Stockholm. www.ferronordic.com
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Ferronordic AB (publ)
114 34 Stockholm
Corporate ID no. 556748-7953
Phone: +46 8 5090 7280
This is information that Ferronordic AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication on 1 March 2021, 11:45 CET.
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