GAZ Group and Terex Corporation said they have entered into an agreement to form a joint venture company for the manufacture of construction and roadbuilding equipment in Russia. Under the agreement, the joint venture will manufacture, market and sell certain Terex and all GAZ Group construction and roadbuilding products in Russia, as well as distribute construction and roadbuilding products manufactured by Terex and exported into Russia. The joint venture will also sell certain construction and roadbuilding products of GAZ Group for export.

GAZ Group will provide manufacturing facilities and human resources, as well as access to the GAZ Group’s Construction Equipment Division dealer network. The joint venture arrangement will allow access to relevant technology and know-how that will help to upgrade the current product portfolio of the GAZ Group Construction Equipment division. The joint venture is expected to be operational in early 2012.

Oleg Deripaska, CEO of Basic Element, majority owner of GAZ Group, said, “I welcome this joint venture between GAZ Group and Terex, which expands and upgrades the road construction equipment product line offered to Russian and international customers and puts both companies in a strong position to take advantage of Russia’s booming infrastructure building market. Russia has a lot of roads to build, and we shall be there and ready to deliver.”

Ronald M. DeFeo, chairman and chief executive officer, Terex, said, “From our viewpoint, the opportunity for Terex to participate in helping to build vital infrastructure in Russia and other markets, as we better serve the equipment needs of both existing and new customers is truly exciting. The combined product offerings, expanded geographic reach and extensive manufacturing capacity in the Russian Federation offer considerable opportunity for both our companies.”

The joint venture will announce the specific Terex designed products that will be initially introduced and produced as decisions are finalized. Production is planned for GAZ Group’s Tvex Excavator, Bryansk Arsenal, Chelyabinsk Construction and Road Machines, and Zavolzhsky Crawler Vehicle plants.