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 |
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Kevin O'Reilly, 203/222-5943 |
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