Press releases - URSUS CONQUERS AFRICA - DESTINATION TANZANIA2015-10-22

Warsaw, 22 October2015

Press Information

 

POLISH BRAND GROWS STRONGER

 

URSUS CONQUERS AFRICA - DESTINATION TANZANIA

 

URSUS has concluded another contract in Africa

- it will deliver tractors, tools and spare parts to Tanzania

 

22nd October 2015 URSUS S.A. in the presence of Mr Mizengo Pinda, the Prime Minister of Tanzania,  and Mr Hussein Ally Mwinyi, the Minister of National Defence, as well as Mr Lech Wałęsa, the former President of Poland, signed a contract with National Service Corporation Sole (SUMA JKT) for the delivery of 2400 tractors, tools and spare parts. The agreement also includes equipping the assembly hall and service centres located in Tanzania. The total worth of the contract in the date of its signing is 55 million USD. The agreement will be realized in the first three quarters of 2016.

 

- The contract with SUMA JKT company is the third agreement concluded by URSUS in Africa. It has strengthened our position as a partner for African entrepreneurs and it is a proof that of our prevalence over the competitors on the international market. – says Karol Zarajczyk, the President of the Management Board of URSUS S.A.

 

URSUS STRENGHTENS ITS POSITION IN AFRICA

 

Within the frames of the contract, the company will deliver in the 1st, 2nd and 3rd quarter of 2016 2400 tractors of the powers ranging between 50-85 HP together with the tools and spare parts. Moreover, URSUS will equip the assembly hall and 8 service centres  in Tanzania.  

 

The Tanzanian contract of URSUS is the effect of the company’s policy of doing business on the African market. The policy aims at not only selling the products but also at transferring the technology, creating new working places and supporting the governmental programme GO AFRICA which promotes Polish enterprises on the African continent. The signing of the contract was possible also due to the bilateral agreement of the Polish and Tanzanian governments from 28th September 2015 which was connected with the credit within the help programme.

 

The payment for the goods will be realized according to the conditions of the international agreement and regulations concluded by Bank Gospodarstwa Krajowego (BGK) and the Tanzanian Ministry of Finance. The first tranche will be in the form of advance payment that is 22 million USD before the beginning of the deliveries, the next one - 58% of the price (31,9 million USD) will be done after presenting the transport documents for the following shipments, and the last one of 2% - 1,1 million USD will be finalised after signing the protocols of the third parts of the realization of the project.

 

URSUS AS A PARTNER OF THE FIRST CHOICE FOR THE MECHNIZATION OF AFRICAN AGRICULTURE

 

URSUS has been developing dynamically on the African market since 2013 when the first contract with an Ethiopian company METEC was signed. The agreement included delivering tractors, equipment for service centres and spare parts. Within the frames of this contract, on 12 May 2015 the assembly of URSUS tractors started operating the city of Adama. The people working there were trained by Polish engineer and technologists. Furthermore, in August 2015 URSUS signed the second contract of 30,672 million USD with the company – Ethiopian Sugar Corporation – for the delivery of tractors, trailers and spare parts for the transport of sugar cane.

 

URSUS is planning to expand its influence on another African markets where the Management Board is observing the demand on the agricultural products. In the next decade the average rate of the development of the African countries is supposed to reach 7% per year.

 

- The contract in Tanzania is the result of broad expansion of URSUS in Africa. Our products are highly valued there because of the quality of its components as well as their simplicity. By realizing the agreements in Africa we contribute to the mechanization of agriculture in Africa and their further development – adds the President Zarajczyk.

 

URSUS takes part in the campaign propagating the mechanization of agriculture which is led by the African Union. In June 2015 during the summit of the African Union in Johannesburg (RSA) and its plenary session, the 54 leaders of the membering countries were given URSUS rototillers. Thus, the cooperation and engagement of the company is appreciated by the African Union. The chairperson of the African Union Comission, Mrs Nkosazana Dlamini-Zuma expressed her gratitude for the cooperation by issuing a thank-you letter.

 

For further information ask:

 

Mariusz LewandowskiURSUS S.A. Press Officer                                       

phone: + 48 544 271 101

mobile: + 48 669 060 051

mariusz.lewandowski@ursus.com

Information about the company:

URSUS S.A. is the biggest Polish producer of tractors and agricultural machinery and the brand itself has over 120 years of tradition in the mechanisation of Polish agriculture. The company offers a broad range of vehicles, machines and devices produced for agriculture in the country and outside it. The products of URSUS meet the demands and needs of all generations of farmers combining the tradition of Polish motorisation with modernity and world quality. URSUS is the oldest brand of Poland which is world-renowned and it has the potential for further development.

The company has got three production plants: in Dobre Miasto, in Opalenica and the biggest one in Lublin, where the total number of workers reaches about 700. URSUS produces annually around 1 200 tractors and several thousands of agricultural machines sold in Poland and abroad.

The group belongs to the key investors of the Lubelskie region where it has its production base and R&D laboratory. URSUS R&D cooperates on innovative solutions with the engineers from Lublin University of Technology as well as with Military University of Technology in Warsaw. The Management Board wants to use its 120-year-old tradition of Polish engineers and constructors to create in Lublin a modern research and development centre. The products of URSUS have thousands of clients home and abroad, e.g. they go to Czech Republic, Hungary, the Netherlands or Pakistan. Out of 1,5 million tractors used now in Poland, over a half, that is about 700 000 are the ones of URSUS.

The products of URSUS reach thousands of clients home and abroad, they are sold to e.g Czech Republic, Belgium, the Netherlands or Pakistan. Out of 1,5 million tractors used currently in Poland, over a half of them, that is about 700 000 are of URSUS brand. Since the last years URSUS ha salso joined the group of the leaders of Polish exporters to Africa.

 

In 2014 r. URSUS S.A. reached a record 51,5% year-on-year increase of revenue to the level of 224,1 million PLN, i.e. the derivative of increasing the foreign sale of 142,9% year-on-year is connected inter alia with the realisation of the contract with Ethiopia (122,2 million PLN). The domestic sale in the given time period was 102 million PLN, i.e. an increase of 4,3% year-on-year. The gross profit from the sales was about 42,2 million PLN, i.e. 189,5% increase year-on-year and 18,9% margin on this level of profit. EBIT grew to 21,3 million PLN against the analogic, i.e. 21,3 million PLN loss in 2013. The EBIT margin was 9,5%. The nett profit in 2014 r. was 14,9 million PLN.



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