Palfinger acquires important crane producer in Russia

December 19, 2013

Salzburg, December 19, 2013 – Yesterday the PALFINGER Group signed a contract which, subject to official approvals, will govern the acquisition of 60 per cent of the Russian PM-Group Lifting Machine by PALFINGER CIS GmbH and 20 per cent by Steindl Forsttechnik GmbH. PM-Group Lifting Machine is an important supplier of cranes for timber and recycling in Russia.
PM-Group Lifting Machine is composed of the two Russian crane manufacturers Velmash and Solombalsky, both of which produce and distribute a broad range of timber and recycling cranes. The group also operates in the market segments of loader cranes, stationary cranes, container handling systems and customized solutions. The Group’s extensive sales network, comprising 86 dealers, service centres and regional offices, is the perfect addition to the market development efforts being pursued by PALFINGER and EPSILON.

PM-Group Lifting Machine currently generates revenue of approx. EUR 50 million and has a staff of 1,400. As a national supplier, the group provides timber and recycling cranes for the broad entry-level segment, which is dominated by a few local players. Only a small share of the market is available for higher-priced imported products from international manufacturers like PALFINGER EPSILON. PALFINGER also sees potential for PM products in India and China.
“The acquisition of PM-Group Lifting Machine marks a significant expansion of PALFINGER’s and the Steindl family’s activities in Russia. Together we will be able to offer our customers a broad range of products and enhanced service, primarily in the field of timber and recycling cranes,” said Herbert Ortner, CEO of PALFINGER AG, who is pleased with this further step in the Group’s internationalization strategy. “This transaction shows that throughout the entire year 2013 we have seized numerous opportunities to grow. Our priority for 2014 will be the consolidation of the Group,” Ortner added.
Together, PALFINGER and Steindl Forsttechnik GmbH will hold an interest of 80 per cent in PM-Group Lifting Machine. The parties to the transaction have agreed to keep the purchase price confidential. The closing will take place as soon as the official approvals have been obtained.

Source: Palfinger