Construction machinery manufacturer JCB has landed a Ј23m contract to supply diggers to prepare for the 2014 Winter Olympics in Russia.
Deal is good news for UK manufacturer struggling at home
Russian engineering contractor MOCT signed up to buy hundreds of British excavators and generators to prepare road, bridge and tunnel infrastructure at Sochi.
The machinery will be used again at Vladivostok, for the construction of a road bridge in advance of the 2012 Asia Pacific Economic Co-operation (Apec) Summit.
The good news for the UK-based company follows last week's agreement by 2,500 UK staff to take a pay cut and work a four-day week to help it through the economic downturn.
JCB announced the deal in Moscow, where sales managing director Tim Burnhope is one of a delegation of business leaders accompanying business secretary Lord Mandelson.
“I am delighted that we have been able to save 350 jobs.” – Keith Hodgkinson of the GMB union on JCB staff agreement.
Mr Burnhope said: “MOCT is one of the largest civil engineering contractors in Russia.
“This substantial order is a further endorsement of JCB products and the service and support offered by our dealer in European Russia, Lonmadi.
“Lonmadi recently opened a new depot in Sochi to support their sales efforts in the region - we are delighted that the investment in premises and staff has paid off so quickly.”
The JCB dealer network now has over 70 sales and services branches throughout Russia.
On the second day of his business trip to Moscow, Lord Mandelson welcomed the deal with the Russian civil engineering contractor.
The minister said: “We can move markets as well as earth if we keep the business relations right between Russia and the UK.
“Trade is growing at more than 25% a year, year on year.
“Russia wants British goods and investment and Britain likewise welcomes Russian investment in our country.”