Ponsse and Volvo to cooperate in Latin America
PONSSE OYJ STOCK EXCHANGE RELEASE 13 April 2006, 1:30 p.m.
Ponsse and Volvo to cooperate in Latin America Ponsse and Volvo agreed cooperation in Latin America to offer full line solutions for the customers and distributors. Under this cooperation Ponsse and Volvo will find the best application for eucalyptus and pine harvesting needs. Together companies can now offer comprehensive alternatives so that distributors can serve the industry in best possible way. The cooperation with Volvo is a natural continuation of our strategy in Latin America. Volvo has a strong position in the market, a comprehensive network and good customer relationships. Volvo and Ponsse are based in Nordic companies, sharing similar thinking about quality and operational culture: the culture and procedures work well together. "We started our collaborative product development between us and it has resulted in the development of a purpose-built professional excavator-based harvesting applications, integrating Ponsse's competence in the forest industry - over thirty-five years - and Volvo's remarkably extensive experience in excavator-based machines. Together we can offer a clever solution from the forest to the mill: harvesting, short-distance haul, road transport and timber processing in production plants. We also offer to our customers advanced information system solutions and related applications that enhance the entire logistics chain for efficient wood procurement, says Arto Tiitinen", President and CEO of Ponsse Oyj. In Brazil alone, the paper and pulp industry uses wood harvested from cultivated plantations over 100 million cubic meters per year, and the volume of harvesting will double in the near future. Eucalyptus trees grow fast, the rotation time is approximately seven years. The world's leading forest companies have strongly invested, and will continue to strongly invest, in the paper and pulp industry in Latin America. The investments will increase the demand for eucalyptus, consequently increasing the demand for forest machines. As a result, we decided to also initiate the product development and production operations of debarking harvesting heads at Ponsse Latin America Ltda. "It's important to have good distribution network in a very competitive market. With Ponsse's experience in forestry sector and Volvo´s experience in Latin American market, together we will operate close to the customer and ensure the efficiency of harvesting operations for them by providing an efficient maintenance network and comprehensive training opportunities. With this long term partnership together we will strengthen our penetration and gain remarkable market position in Latin America forestry sector", states Arto Tiitinen. Ponsse Oyj is one of the three leading manufacturers of forest machines. Ponsse manufactures forest machines and timber harvesting-related information technology as well as producing services relating to their effective use. Ponsse Oyj's shares are quoted on the main list of the Helsinki Stock Exchange. Export and foreign operations account for approximately sixty-five per cent of the company's turnover. Vieremä, 13 April 2006 PONSSE OYJ Arto Tiitinen President and CEO FOR FURTHER INFORMATION, PLEASE CONTACT: Arto Tiitinen, President and CEO, Ponsse Oyj tel. +358 400 566 875 DISTRIBUTION Helsinki Stock Exchange Principal media www.ponsse.com