Russia is a growth market where the next years will see billions invested in infrastructure measures such as the construction of roads, airports, railways, the expansion of power, waste and water management, in the construction of public buildings like schools, universities or hospitals as well as the expansion of networks for telecommunications.
Wacker Neuson has been able to achieve very positive sales developments in Russia over recent years. The group will continue to benefit from the growth of the Russian construction industry.
"Significant growth and development areas are to be found over the coming years particularly in the north and south-west regions of Russia. Central Russia too will continue to develop in a stable way and Siberia as well as the Far East will also not just play a small part," is the assessment of Vladimir Terentyev, managing director of the Russian Wacker Neuson affiliate.
Major sporting events like the Winter Olympics in Sochi on the Black Sea and the Krasnodar region as well as the FIFA World Cup in 2018 are also driving the expansion of the infrastructure. Construction equipment from Wacker Neuson was also used in the preparations for the games in Sochi. "The Olympic site was one of the largest construction projects of the last four years," said Vladimir Terentyev. "Many construction companies were involved in the project, both domestic and foreign. Internal vibrators for concrete compaction, machines for compaction, lighting systems and pumps from Wacker Neuson were in use."
For future major projects there is also much potential for the construction equipment and compact machines from the group.
Federal Republic of Russia
Interview with Vladimir Terentyev, executive director of Wacker Neuson Russia.
"I saw my first Wacker Neuson machine in 1997, it was a vibratory plate. At that time I was working for a Russian trading company and was looking for a reliable supplier of compacting technology. I wrote an e-mail to Wacker Neuson and received an answer within 30 minutes and a draft co-operation agreement shortly afterwards. The co-operation started in this way. In 2004, I got the offer to start a Wacker Neuson branch in Russia and to head it up. I have now been the managing director for Wacker Neuson's affiliate in Moscow for the last nine years."
How has the market in Russia developed?
Over recent years, the Russian market has developed quickly. We are currently seeing the process of a new industrialization of the country. Small and large industrial and agricultural companies are being newly established. The state continues to invest in large infrastructure projects. In 2018, the FIFA World Cup takes place in Russia. It will be held in 13 cities across the country. In the next five years, 15 power plants and thousands of kilometers of track for high-speed trains will be built in Russia. The state is also investing heavily in the construction of roads, schools and kindergartens as well as in social programs. This is naturally making impacts on the growth of the construction industry in Russia and the countries in the Customs Union between Russia, Kazakhstan and Belarus.
Accordingly, we are seeing a large and increasing demand across practically all of the Wacker Neuson product range. The product segments with particular demand are concrete technology, soil compaction equipment, compact excavators and wheel loaders. Surface and concrete heaters as well as heating and lighting systems are also playing an important role as winter lasts almost half a year in Russia.
What is Wacker Neuson's market position in Russia?
Wacker Neuson is very well positioned in the concrete technology, soil compaction and lighting system divisions. The compact machine branch in Russia is still in its infancy.
Each year the sales numbers increase, and we are taking part in this growth.
Tell us something about the road shows which you present in Russia.
Regardless of the size of Russia, Wacker Neuson regularly holds road shows to present customers and prospective customers with its various products. This requires the focus of all resources from the company as we sometimes have to travel 5,000 km to reach a city where we would like to present our products. Such events are planned in conjunction with our dealers and we make a point to visit several cities in a region. In November 2013, we presented our heating equipmentand air dehumidifiers in several cities in Siberia and the Urals.