November 28, 2006
KONE localizes its Russian activities and withdraws from joint venture plans with KMZ
KONE Corporation and KMZ Karacharovo Mechanical Factory have agreed to withdraw from their plans to set up a joint venture elevator company in Russia, which was announced by the parties in April 2005. KONE and KMZ believe that in the current market situation their future development on the Russian elevator market is best pursued independently. KONE and KMZ will, however, continue their cooperation on the local Russian elevator market.
The Russian elevator market has grown significantly this year. During the first 9 months of 2006, KONE's Russian subsidiary has achieved over 50% growth in order intake compared to the corresponding period last year. This growth has been achieved in several segments including Moscows fast growing major projects.
Encouraged by our strong growth this year, we have decided to take further steps to localize our activities in Russia. We will strengthen our distribution network and develop our product portfolio to meet local needs even better. In addition, KONE will continue to study the feasibility of localizing elevator assembly in Russia", concludes Executive Vice President Klaus Cawén.
KONE is one of the worlds leading elevator and escalator companies. It provides its customers with industry-leading elevators and escalators and innovative solutions for their maintenance and modernization. KONE also provides maintenance of automatic building doors. In 2005, KONE had annual net sales of EUR 3.2 billion and about 27,000 employees. Its class B shares are listed on the Helsinki Stock Exchange.
Executive Vice President
Senior Vice President,
Corporate Communications & IR
For further information
Klaus Cawén, EVP, tel.+358 204 75 4492
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