Russia as motor for further growth

16.04.2008 -

The MAN Group is opening a new head office in Russia. In the MAN House Moscow, the leading international vehicle and mechanical engineering enterprise will bundle agencies of all its sectors in Russia and the CIS. The house will be a central point of contact for customers and prospective customers in this dynamic growth region. Establishment of this new institution underscores the significance of these markets for the MAN Group's international growth strategy. MAN has been present in Russia for 140 years and achieved an order volume last year of over 709 million euros. "Russia has developed into an important motor for further growth of the MAN Group. With our new office in Moscow, we have an ideal platform for presenting our manyfaceted activities in Russia and other CIS countries," said MAN AG CEO HÃ¥kan Samuelsson at a press conference in Moscow.

The house concept is part of the "MAN Business Platform", which enables customers easier access to MAN products. It contains clear brand repre-sentation and lasting improvement of the market presence of all Group companies.

The new MAN House is located in the Moscow district of Lefortovo. Circa 40 employees are available for MAN customers there. Lefortovo is in the northeast part of the city and was considered as the German immigrants' quarter as early as the age of Peter the Great (1682-1725). A number of corporate sectors work together under the MAN logo, focusing on the competence fields of transport, drives and energy. The first MAN Houses opened in China, the Middle East and Latin America in 2007; after Russia, houses are planned for Asia and Africa.

MAN’s commitment to its customers in the Russian Federation is charac-terized by continuity. The company supplied a water turbine to a Russian customer in St. Petersburg in 1867. In the 1950s, it was one of the founders of the German Committee on Eastern European Economic Relations. MAN showed commitment and determination in politically difficult times and maintained its presence in foreign trade organizations. Today, the Group – together with its customers - profits from an average economic growth of over six percent per year.

MAN Nutzfahrzeuge is among the three largest truck importers in Russia. In 2007, circa 4,500 vehicles were delivered to that country; the year before, nearly 1,600 trucks were delivered. The market share for imports rose in this period from 16 to 22 percent. To meet the growing demand in Eastern Europe and the CIS, MAN Nutzfahrzeuge opened a new truck assembly plant near Cracow, Poland in October 2007. Circa 15,000 trucks can be produced at this site annually. In coming years, MAN Nutzfahrzeuge will invest substantial amounts in its sales and service network in Russia and the CIS. Currently, the company cooperates with 25 Russian sales partners. In 2008, the number of such partners in Russia will increase to 40; by 2010, 100 cooperative ventures are intended in the CIS region. MAN Avtomobili Rossiya, the 100 percent subsidiary of MAN Nutzfahrzeuge AG located in Moscow, now employs a workforce of circa 360.

MAN Diesel continually sets international standards in the Russian Federation through its cooperation with farsighted customers. Deliveries of Diesel engines for Diesel power plants were particularly significant at the beginning of the 20th century. The pilot customer for one of the current innovations is Mezhregionenergogas. The Gazprom subsidiary ordered the first newly developed 32/40 PGI gas engine for a power plant in Moscow.

MAN Turbo has over 200 years of experience in developing and realizing individual products and solutions for industrial applications that are custom-tailored to specific customer needs. Machines and equipment from MAN Turbo have a very good reputation in the CIS, especially in the oil and gas sectors. In recent years, a number of machine sets have gone into operation in this region. For a geared engine with 200 bar for manufacturing fertilizer, the world's first ten-stage integrally geared compressor was developed for a Russian customer. MAN Turbo also delivered fifteen pipeline compressors for transporting gas, with an overall performance of 39,000m³/h with 22.5 MW, to Gazprom. As the original manufacturer, MAN serves its customers in all project phases, from design and execu-tion all the way to service. In May 2007, the national Turkmenian oil com-pany signed a comprehensive service contract with MAN Turbo for 32 turbomachine sets in the country's largest refinery.

MAN Ferrostaal supplies individual machines and equipment, especially for the metal processing, textile and packaging-machinery branches as well as equipment for the candy industry. In the area of plant construction, projects for natural gas processing, metallurgy and renewable energies are in preparation.

About MAN Ferrostaal AG:

MAN Ferrostaal is a worldwide supplier of industrial services for the construction of large-scale industrial plants and machine supply. As a general contractor for plant construction, the company offers project development, project management and financing solutions for turnkey plants in the areas of solar thermal power plants as well as biofuels, petrochemical and industrial plants. In ccoperation with manufacturers of machines and production lines, MAN Ferrostaal offers sales and services in the areas of automotive industries, print and packaging, piping, ships and transport solutions. With 4,200 employees MAN Ferrostaal is represented in more than 60 countries. The company achieved a turnover of EUR 1.4 billion in 2007.

MAN Ferrostaal is a subsidiary of MAN Aktiengesellschaft, Munich. The MAN Group is one of Europe’s leading manufacturers of engineering equipment and vehicles, generating annual sales of around EUR 16 billion. MAN supplies products, systems and services to the capital goods industry and employs approx. 55,000 people worldwide. The core areas operated by the MAN Group, Commercial Vehicles, Industrial Services, Diesel Engines and Turbomachines, all hold leading positions in their markets. MAN is a member of the DAX German Share Index, Germany’s top 30 public limited companies.