View all Press Releases

Terex to Make Strategic Investment in Tatra Trucks

January 24, 2002

WESTPORT, Conn.--(BUSINESS WIRE)--Jan. 24, 2002--Terex Corporation (NYSE: TEX) today announced that it will make a strategic investment in Tatra, a.s., an internationally recognized manufacturer of on/off-road heavy-duty vehicles for commercial and military applications.

Tatra, which is based in the Czech Republic, had estimated 2001 revenues of approximately $157 million. Terex will acquire 40.61% of Tatra from SDC International, Inc. (OTCBB:SDCN), who recently purchased 91.61% of Tatra from the Czech government. The remaining shares of Tatra, approximately 8%, are publicly held.

"This investment provides Terex with opportunities on many fronts," commented Ronald M. DeFeo, Chairman and Chief Executive Officer of Terex. "It immediately expands our presence in the defense and government truck markets without the significant development costs and time delays associated with new products. This investment provides avenues into Central and Eastern Europe as well as China, where Tatra has strong brand recognition. We will also look to source Terex components through Tatra to take advantage of attractive costs in order to insure our continued competitiveness."

"We are excited to be associated with the Tatra product, which has a reputation of high quality and innovation in the market," added Fil Filipov, Terex Executive Vice President, who will also be responsible for managing Terex's interests in this investment and will be a member of the Tatra supervisory board. "We feel there is opportunity to source Terex components through Tatra at prices lower than we are currently paying. Tatra already performs component manufacturing for third parties utilizing their strong design and engineering background as well as their foundry, forging, and tooling capability. In fact, Tatra is one of the largest producers of castings in the Czech Republic."

In addition to its strategic investment in Tatra, Terex will be participating in a new joint venture with Tatra and STV USA under the name American Truck Company. This joint venture will assemble, market, and sell off-road heavy-duty vehicles based on the Tatra design for use in rough terrain and difficult operating conditions, primarily for military and other government applications. These vehicles will be based on the proprietary design and technology of Tatra, while incorporating U.S. components and will be assembled by Terex at its American facility in Wilmington, North Carolina. The vehicles will be marketed under the "Terex," "American Truck," and "Tatra" brand names to the U.S. Government and armed forces, as well as to overseas governments under the U.S. Foreign Military Funding (FMF) and Foreign Military Sales (FMS) Programs. The vehicles also will be marketed to commercial users in the U.S. and certain other countries.

Ernie Verebelyi, Group President - Americas, who will oversee this joint venture for Terex, commented, "Tatra has developed a range of world class four-by-four to twelve-by-twelve heavy-duty vehicles over its more than 100-year history, providing superior value and low life-cycle costs to meet the demanding requirements of military, government, and commercial users worldwide." Mr. Verebelyi added, "These vehicles, which have been used by the U.S. military and many other armed forces around the world, have already been combat tested and proven to provide unsurpassed quality, mobility, and over-match capability. Terex's venture partners, Tatra and STV USA, have been working with the U.S. Government and various overseas governments for some time on several upcoming military truck requirements. With the formation of this venture, we will begin competing for government and commercial contracts as well as on various FMF and FMS military contracts in the very near future. Terex will provide its knowledge and experience in manufacturing, sourcing, and assembly to the joint venture, as well as the Terex brand name."

Terex Corporation is a diversified global manufacturer based in Westport, Connecticut, with 2000 annual revenues in excess of $2 billion. Terex is involved in a broad range of construction, infrastructure, recycling and mining-related capital equipment under the brand names of American, Amida, Atlas, B.L. Pegson, Bartell, Bendini, Benford, Bid-Well, CMI, Canica-Jaques, Cedarapids, Cifali, Coleman, Comedil, Fermec, Finlay, Franna, Fuchs, Grayhound, Jaques, Italmacchine, Koehring, Load King, Lorain, Marklift, Matbro, Morrison, Muller, O&K, P&H, PPM, Payhauler, Peiner, Powerscreen, RO, Schaeff, Simplicity, Square Shooter, Telelect, Terex, and Unit Rig. More information on Terex can be found at www.terex.com.

Safe Harbor Statement

The above contains forward-looking information based on Terex's current expectations. Because forward-looking statements involve risks and uncertainties, actual results could differ materially. Such risks and uncertainties, many of which are beyond Terex's control, include among others, the sensitivity of construction and mining activity to interest rates, government spending and downward economic cycles and general economic conditions; the success of the integration of acquired businesses; the retention of key management; foreign currency fluctuations; pricing, product initiatives, and other actions taken by competitors; the effect of changes in laws and regulations, including environmental laws and regulations; the effect of debt and restrictive covenants; and other factors, risks, uncertainties more specifically set forth in Terex's public filings with the SEC. The forward-looking statements herein speak only as of the date of this release. Terex expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement included in this release to reflect any changes in Terex's expectations with regard thereto or any changes in events, conditions, or circumstances on which any such statement is based.

CONTACT: Terex Corporation, Westport
Kevin O'Reilly, 203/222-5943


Categories: Press Releases
View all Press Releases