September 3trd, 2007
Cramo and Rentakran establish joint rental operation in Russia
Cramo Plc, one of Europe's leading rental companies, and ZAO Rentakran, the leading heavy lifting rental service company in Russia, establish a joint rentaloperation in Russia. Cramo Plc owns 75% and ZAO Rentakran 25% of the new company. Cramo has an option to buy the 25% minority share from the other shareholder in spring 2011.
The new company will rent high quality construction machinery and deliver related services to its construction and industry customers. The company will start its operations immediately in Rentakran's depots in Moscow, Yekaterinburg and Krasnodar. It will expand rapidly to other large Russian cities along with its customers. Cramo and Rentakran believe that the fast construction growth will continue long time in the Russian market which is boosted by stable economic development, new industrial initiatives as well as the 2014 Winter Olympics in Sochi.
"Cramo has strong experience from Russia where it has been doing rental business successfully for a lo forward in expanding to new markets in Moscow and other major construction markets in Russia", comments Jarmo Laasanen of Cramo. "Our strategic cooperation with Rentakran brings us new customers and already working relationships with the authorities of the new territories. This arrangement also implements Cramo's earlier stated strategy to expand its business in Eastern Europe".
"Through the new joint venture company we can offer Rentakran's customers the possibility to rent all types of construction equipment, like site huts, generators, hoists, working platforms and aerials from one source. Our customers will benefit from Rentakran's high quality service being added to a wider product portfolio. Cramo's resources and general rental experience will ensure an increased supply of high quality equipment to the market", says Juhani Järvilehto of Rentakran.
The strategic cooperation through the new company will satisfy the growing need for new technology, professional construction equipment and related services. The new company will invest in new equipment and it is expected to quickly achieve a strong position in the Russian equipment rental market
Cramo Plc is a service company specialising in construction machinery and equipment rental and rental-related services, as well as rental and sale of modular space. As one of the industry's leading service providers in the Nordic countries and Central and Eastern Europe, Cramo operates in ten countries with 250 outlets. With a group staff of approximately 2,000, Cramo's consolidated sales for 2006 totalled EUR 402 million. Cramo is listed on the OMX Nordic Exchange Helsinki Oy. For further information, please visit www.cramo.com.
Rentakran is the leading crane rental company in Russia with a fleet about 300 western tower and truck cranes including brands such as Liebherr, Potain and Alimak. Its customers include big international and Russian construction companies as well as industry and energy organizations. Rentakran employs some 400 people and has its operations now in Moscow, Yekaterinburg and Krasnodar.
Vesa Koivula, President and CEO
Vesa Koivula, President and CEO, Cramo Plc, +358 40 510 5710
Jarmo Laasanen, Senior Vice President, Cramo Plc, +358 50 500 0541
Juhani Järvilehto, ZAO Rentakran, +7 095 103 0640Distribution
OMX Nordic Exchange Helsinki Oy
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