URSUS CONQUERS AFRICA – NEXT IMPORTANT CONTRACT FOR DELIVERING AGRICULTURE MACHINERY TO ETHIOPIA2015-08-26

                                                                                                                                       Warsaw, 26 August 2015

                                                                                                                                                                                            

POLISH BRAND GROWS STRONGER

URSUS CONQUERS AFRICA – NEXT IMPORTANT CONTRACT FOR DELIVERING AGRICULTURE MACHINERY TO ETHIOPIA

 

On 26th August 2015 URSUS S.A. concluded a contract with the Ethiopian Sugar Corporation (ESC) for delivering tractors, trailers and spare parts for transporting sugar cane. The contract of 30,672 million USD includes an option of increasing the value of the order by 25% till the end of September 2015. The order will be executed in the fourth quarter of 2015 and the first quarter of 2016. The agreement with ESC is the second African contract of URSUS and it is the result of winning the tender in which the financial and technical proposal of URSUS was given the highest assessment declassifying all other tenderers.

URSUS is the only Polish producer of tractors which supports the mechanisation of agriculture in Africa. We are pleased with the next contract because it will strengthen our position as a partner of African entrepreneurs. Winning the tender is also a proof of the fact that a Polish brand is able to successfully compete on the international market – emphasizes Karol Zarajczyk, the President of the Management Board of URSUS S.A.

URSUS STRENGTHENS ITS POSITION IN AFRICA

Within the framework of the contract the company will deliver 174 tractors and 390 trailers, along with providing the supply of the spare parts, in the fourth quarter of 2015 and the first quarter of 2016. In the day of signing, the total value of the contract with the Ethiopian Sugar Corporation is 30 672 075 American dollars. Moreover, it includes an option of increasing the value of the order by 25% till the end of September 2015. The payment will be realized by 40% prepayment i.e. 12 268 830 USD before the beginning of the delivery and the remaining 60% in three parts during the process.

The Ethiopian contract of URSUS was achieved thanks to the contribution of GO AFRICA, a government program promoting  Polish enterprises in Africa. Signing of the contract is the result of a bilateral agreement between the governments of Poland and Ethiopia. Additionally, Bank Gospodarstwa Krajowego (BGK) granted a credit to the Ethiopians for the purchase of the tractors and trailers.

The contract concluded with the Sugar Corporation is the second agreement of URSUS in Ethiopia. In 2103 the company signed a contract for delivering tractors and spare parts as well as equipping service centres with the Ethiopian company METEC. In order to realise the contract, URSUS opened an assembly plant in the city of Adama on 12th May 2015. The workers employed there were trained by Polish engineers and technicians.

URSUS AS A PARTNER IN MECHANISATION  OF AGRICULTURE IN AFRICA

URSUS is planning to expand on other African markets where the Board has noticed the demand on agriculture products. Currently, the company is carrying out negotiations in Angola, Tanzania and Nigeria. During the next decade the average rate of increase in the development of African countries is predicted to reach annually even 7%.

We believe that our currently realized contracts will facilitate negotiations with prospective partners because Ethiopia is the benchmark for other African countries. On the governmental level we are observing a bigger interest in the products of URSUS displayed by African countries whose entrepreneurs know and appreciate this brand. URSUS tractors are created basing on verified components. Thanks to this fact we are able to offer high quality and life span of products in a considerable price. We hope that the bridgehead gained in Ethiopia will open the way for further expansion of Africa and it will guarantee a dynamic development of the company for the next 2-3 years – adds President Zarajczyk. 

A campaign for the mechanisation of agriculture started in July 2015 during the Africa Union Summit in Johannesburg (RSA). During the campaign and the plenary session of the Summit the 54 heads of the member countries were given URSUS rototillers. The cooperation and the commitment of URSUS was appreciated by the African Union. Thus, Mrs Nkosazana Dlamini-Zuma, the chairperson of the African Union Commission, expressed her gratitude by writing to URSUS a thank-you letter for the involvement in the project and with the expectations of further cooperation.

For further information contact:

Mariusz Lewandowski

URSUS S.A.Spokesman                                                                                      

Phone: + 48 544 271 101                                                                                  

Mobile phone: + 48 669 060 051                                                                      

mariusz.lewandowski@ursus.com                                        

Information about the company:

URSUS S.A. is the only Polish manufacturer of tractors with the brand of over 120 years of tradition connected with the mechanisation of Polish agriculture. The company offers a broad range of vehicles, machinery and devices produced for agriculture domestic and abroad. URSUS products meet the demands of all generations of farmers by connecting the tradition of Polish automotive industry with modernity and global quality. URSUS is the oldest national brand with a global reputation and the potential for further development.

The company owns three production plants: in Dobre Miasto, in Opalenica and  the biggest one in Lublin, where in total work over 700 employees. URSUS manufactures about 1200 tractors and several thousand items of agricultural machinery per year which are sold home and abroad.

The group belongs to the key investors of the Lublin Region where it develops its production infrastructure and R&D laboratory. In the process of developing innovative technological solutions URSUS R&D cooperates with the engineers of Lublin University of Technology as well as Military University of Technology in Warsaw. The Board wants to use its over 120-year-old tradition and the potential of Polish engineers and constructors in order to create a modern centre of research and production in Lublin.

The products of URSUS are distributed to thousands of customers in the country and abroad, e.g. to Czech Republic, Belgium, the Netherlands or Pakistan. From about 1,5 million tractors used now in Poland over a half i.e. about 700 000 are of URSUS brand. Since the past years URSUS has also become one 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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