Terex bets on the Latin American market

first_imgInternational Mining attended the M&T Expo in Sao Paulo, Brazil in early June and reports over the coming days from those meetings, beginning with Terex which expects “emerging markets should represent 40% of revenue in five years.” In 2008, company sales reached $9.9 billion. Currently, the US and Canada represent 34% of global sales, followed by Western Europe with 32%, Emerging Markets (including BRIC countries) with 23% and Australia, New Zealand and Japan with 11%. Emerging countries have been presenting greatest market growth for Terex, according to Steve Filipov, Company President for Developing Markets. These countries currently represent 23% of the company’s global revenue, a value equivalent to $2 billion.“I’m confident that emerging countries, particularly in Latin America, shall remain important markets for a long time”, Filipov said. “I believe that in the next five years 40% of our revenues shall come from these markets, and this percentage could easily reach 50% in ten years.” Also, the strategy to achieve this forecast involves investments in local production. “We are studying the possibility of expanding our production capacity in these countries, instead of exporting from the US and Europe”, he revealed.Terex operates in five business segments: Aerial Work Platforms, which represent 21% of global sales, Construction 19%, Cranes 29%, Road building 7% and Materials Processing and Mining 24%.Terex Materials Processing & Mining business is structured in four divisions:Trucks over 100 t – Terex Unit RigExcavators over 100 t – Terex O&KHydraulic drilling – Terex ReedrilCrushing & Screening, for which the company has seven plants: Powerscreen, Terex Pegson, Terex Finlay, Terex Jaques, Terex Cedarapids, Terex Simplicity and Terex Canica.The division’s equipment is manufactured in Germany, Australia, England, USA, Northeren Ireland, Malaysia, Mexico and Thailand. Global sales are divided, today between 30% for Emerging Markets, 30% for Australia, New Zealand and Japan, USA and Canada with 26% and Western Europe with 14%.The M&T Expo 2009 had excellent prospects for Terex. “In addition to further consolidating the Terex brand, with its distinctive product segments working together, the fair is an opportunity to enrich the relationship between our team and customers and distributors, with information relevant to equipment for their businesses”, explained André Freire, President of Terex Latin America.last_img read more