Impact on Ferronordic’s business from Volvo Group’s decision to suspend operations at several production sites
As a result of the uncertainty and the measures taken to slow down the spread of COVID-19, the Volvo Group has announced that it will temporarily close many of its operations and that it is not currently in a position to assess the duration of such measures. The suspension will negatively impact Ferronordic’s supply of construction equipment in Russia and Kazakhstan and the supply of trucks in Germany. If protracted, the closures could also impact the supply of spare parts. The impact of the production closures on Ferronordic’s operations and financial position can not be assessed at this moment.
Ferronordic is a service and sales company in the areas of construction equipment and trucks. It is the dealer of Volvo Construction Equipment and certain other brands in all of Russia and Kazakhstan, aftermarket partner of Volvo Trucks and Renault Trucks in part of Russia, and dealer of Volvo Trucks and Renault Trucks in part of Germany. The company also offers contracting services where it owns and operates equipment to carry out works for customers. Ferronordic began its operations in 2010 and now has over 90 outlets and about 1,500 employees. Ferronordic’s vision is to be regarded as the leading service and sales company in its markets. The shares in Ferronordic AB (publ) are listed on Nasdaq Stockholm. www.ferronordic.com
For more information, please contact:
Erik Danemar, CFO, Tel. +46 73 660 72 31, or email@example.com
This information is information that Ferronordic AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation. This information was submitted for publication on 20 February 2020, 17.40 CET