KOMATSU FOREST SECURE MAJOR RUSSIAN ORDER

Summary of Report

Valmet Forest Machine Manufacturer, Komatsu Forest Oy in Finland has sold 20 forestry machines to the Russian company Mondi Business Paper, one of the world's largest paper manufacturers. This deal is the largest ever for Komatsu Forest in Russia. Delivery will begin immediately to Mondi Paper's felling facilities in Komi in northwest Russia.

The purchase includes a similar number of machines for cut-to-length clearing as for full-trunk work and shows Komatsu Forest's broad product range. Machinery supplied for cut-to-length work includes, among other things, the harvester model Valmet 911.3 with a 350-head, which has quickly become popular on the Russian market, and forwarder models Valmet 860 and Valmet 890.2. Full-trunk clearing required a supply of the Valmet 445 EX tracked feller-loader manufactured in America and Komatsu's excavator PC 210 with a Valmet 370E head.

An important element of the deal is the training program that Komatsu Forest will run for Mondi Business Paper's personnel. A total of 72 Russian drivers will receive training. Ten or so, Russian engineers will also receive training on the various types of machinery in Finland and Sweden and, finally, foremen will also be trained.

“This is a long-term deal based on Komatsu Forest's ability to offer excellent servicing and access to spare parts,” explains Alexander N. Gerasev, who is responsible for the Russian market at Komatsu Forest Oy. We will be building up a large stock of spare parts in Komi.

“A wide product range featuring slightly different technology to the machines manufactured in Russia is an important factor in our success. Moreover, our know-how offers excellent opportunities for increasing interest in cut-to-length work in the long term,” says Jari Alahuhtala, the Managing Director of Komatsu Forest Oy.

Mondi Business Paper is also extremely pleased with the deal. Kalevi Kyyrönen, deputy CEO of Wood Division, stresses the importance of training foremen in order to develop the logistics for cut-to-length work.

“Cut-to-length work is cheaper and more efficient and, in the long term, we will be increasing the volume of clearing using this method from its current low share of the total clearing volume in Russia. The fact that we are cooperating with Komatsu Forest and have access to their advanced technology and extensive knowledge is extremely positive,” says Kalevi Kyyrönen.

Source & for further information:
Jari Alahuhtala,
Managing director Komatsu Forest Oy,
Tel. +358-326 589 00,
Mobile +358-400 628 707

November 6, 2005