TEREX ANNOUNCES ENGINE PURCHASE AGREEMENT WITH SCANIA
- Posted March 18, 2010
WESTPORT, CT, USA,Jan. 18, 2010 — Terex Corporation (NYSE: TEX) and Scania AB (OMX Stockholm: SCVB) today announced that the companies have signed a non-exclusive engine purchase agreement for some Terex products. As part of its Tier 4 readiness strategy, Terex has been going through a rigorous process to build stronger partnerships with fewer engine suppliers. This agreement is one outcome of this process.
The transition for affected Terex products will go into effect in time for the phase-in of emissions standards – Stage IIIB and Tier 4i – that will begin in 2011 in Europe and North America, respectively.
“We can choose whatever engine technology that is optimal for our product applications. Our approach is to look at what our end users and dealers want in terms of purchase cost, operating costs, reliability, maintainability, and product support,” says Jacob Thomas, Senior Vice President, Product Development, Marketing, and Terex Business System. “Not being an engine manufacturer, Terex has the flexibility to choose the best technical solution for each of its product applications and does not have to select a one-size-fits-all approach. Scania has the technological expertise and resources to meet our requirements in key product applications and has an outstanding reputation globally.”
“In addition to meeting the new emission standards, Scania engines deliver fuel efficiency and low maintenance costs, resulting in low total ownership cost for the end user,” says Robert Sobocki, Senior Vice President, Scania Engines. “Scania is committed to best-in-class service and its global support network for industrial engines will be ready to meet the high product support standards of Terex equipment customers.”
Throughout 2010, Terex will continue working with its distribution network and customers to prepare for the transition to the new emission standards.
Terex Corporation is a diversified global manufacturer with 2008 net sales of $9.9 billion. Terex operates in four business segments: Terex Aerial Work Platforms, Terex Construction, Terex Cranes, and Terex Materials Processing & Mining. Terex manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, surface mining, shipping, transportation, refining and utility industries. Terex offers a complete line of financial products and services to assist in the acquisition of Terex equipment through Terex Financial Services. More information on Terex can be found at www.terex.com.
Scania is one of the world’s leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. A growing proportion of the company’s operations consists of products and services in the financial and service sectors, assuring Scania customers of cost-effective transport solutions and maximum uptime. Employing 35,000 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2008, invoiced sales totalled SEK 89 billion and net income amounted to SEK 8.9 billion. Scania press releases are available at www.scania.com