The biggest African contract of Ursus2017-03-24

Press information            Warsaw, 23.03.2017

 

POLISH BRAND GROWS STRONGER

URSUS CONQUERS AFRICA – DESTINATION ZAMBIA

 

THE BIGGEST AFRICAN CONTRACT OF URSUS

The Company signed contract of the value of 100 million USD for the delivery

of tractors, agricultural machines, equipment and spare parts to Zambia

 

On 23rd March 2017 URSUS S.A. signed a contract with the Industrial Development Corporation (IDC) for the delivery of 2694 tractors and 2509 agricultural machines together with equipment and spare parts. The contract also includes the set-up of an assembly plant and 10 service centres on the territory of Zambia. The total amount of the contract is 100 million USD. It is the biggest African contract of URSUS. Up till today, the company has concluded projects in Africa for the total value of 140 million USD.

 

– It is another significant contract of URSUS on the African continent. The experience gained over the years on these markets, proven and reliable technology and the recognition of URSUS brand, all resulted in the fact that Zambia is yet another country which decided to choose our offer. Concluding the contract confirms the involvement of Ursus in the realization of projects which contribute to the mechanization of agriculture in another African countries. Our position as a partner for African entrepreneurs is strengthened and it constitutes a proof of our competitive advantage on the international market – says Karol Zarajczyk, the President of URSUS S.A.

 

THE BIGGEST AFRICAN CONTRACT OF URSUS

On 23rd March 2017 in the presence of the Zambian Minister of Finance, Felix Mutati, at the request of the President of the Republic of Zambia, His Excellence Edgar Chagwy Lungu and the Members of the Government of the Republic of Zambia, URSUS signed with IDC the contract for the delivery of 2694 tractors within the power range of 47-180 HP and 2506 agricultural machines, e.g. trailers, manure spreaders, round balers for straw and hay as well as ploughs with equipment and spare parts. Additionally, the contract includes building a modern assembly plant of URSUS’s products in the Lusaka-South economic zone and creating authorized service centres in each of the ten provinces of the country.

The total value of the contract (in the moment of its conclusion) is 100 million USD. The realization of the project will begin immediately after receiving by the company the prepayment in the amount of 40% of the total value of the contract. The completion of the contract is envisaged for one year from the moment of the beginning of its realization.

The current portfolio of the company is 197,3 million PLN. Up till today, the company has concluded projects in Africa for the total value of 140 million USD.

 

THE DEVELOPMENT WITH THE GOVERNMENTAL SUPPORT

The Government of Zambia plans to carry out a national programme for the mechanization of agriculture contributing to the social development of rural areas and the improvement of the standard of living of people. To finance the project, the authorities of Zambia asked the authorities of Poland to grant a soft loan based on the rules of tied aid according to the regulations of the Organisation for Economic Cooperation and Development (OECD).

The payment for the goods will be realized in accordance with the conditions of an intergovernmental agreement and arrangements which will be concluded between the National Economy Bank (Bank Gospodarstwa Krajowego) and the Ministry of Finance of Zambia. The first instalment – as a 40% prepayment that is 40 million USD – will be paid before the beginning of the deliveries, the next one – 58 million USD will be paid after the presentation of shipping documents for next shipments. The last instalment that is 2 million USD will be paid after signing the acceptance protocols of goods of every shipment.

 

For further information ask:

Mariusz Lewandowski

URSUS S.A. Press Officer  

Mobile: + 48 669 060 051

mariusz.lewandowski@ursus.com

 

Informacje o spółce:

Ursus SA 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. At the same time the company successfully develops the segment of city transport by offering around 10 models of buses and trolleybuses  including electric and hybrid buses. This year the company has won two tenders for the delivery of the means of public transport to Toruń and Warsaw. Within the framework of the signed contracts, the company will deliver 15 buses with an option of an additional order of 5 buses.

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 800. URSUS produces annually around 1 500 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, Sweden, Germany, Hungary, Norway, the Netherlands, Ireland, Lithuania and Greece, where all range of products is exported. The company undertakes activities which aim at rebuilding the position of Ursus brand on the markets outside Europe. Out of 1,5 million tractors used now in Poland, over a half, that is about 700 000 are the ones of URSUS. Furthermore, since the past years URSUS has become also a leader of Polish exporters to Africa. In 2013 – within the framework of the agreement between the Polish and Ethiopian government – the group concluded a contract to supply tractors, equipment, service centres, spare parts and trainings with the METEC company (Ethiopia) for the delivery of 3 000 tractors, equipment for service centres, spare parts of tractors and trainings. On 26 August 2015 URSUS signed another contract to deliver tractors, trailers and spare parts for the transport of sugar cane with Ethiopian Sugar Corporation (ESC). The agreement reached in total the amount 30,7 million USD and it was extended by additional order for 27 tractors and 54 trailers of the total value of % 5 million USD. The order was realized till the end of 3rd quarter of 2016. The contract with ESC is the second African agreement for URSUS – it is an effect of winning the tender in which the technical and financial offer of URSUS got the highest mark. What is more, in October 2015 Ursus concluded a contract in Tanzania for the delivery of 2400 tractors, equipment and spare parts as well as equipping the assembly hall and service centres for the amount of 55 million USD. The first shipments within this contract were realized in 2016. The remaining part of the value of 197,3 million PLN will be realized in the first half of the year 2017.

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