The pump expert has signed a special investment contract
Sochi/Moscow/Dortmund. Following a meeting with the President of the Russian Federation, Vladimir Putin, and a delegation of the German Committee on Eastern European Economic Relations in Sochi, Wilo has closed a deal for a special investment program. “The implementation of this contract means that Wilo will gain the status of a ‘local manufacturer’ in Russia and in the next few years will invest heavily in its own site, thereby increasing added value locally and, in turn, strengthening its competitive position in Russia and on the Eurasian market,” said the CEO of the Wilo Group, Oliver Hermes. President Putin was accompanied by the Russian Minister of Trade and Industry, Denis Manturov (who signed the special investment contract in Moscow), the Minister for Economic Development, Maxim Oreshkin, and the Minister of Energy, Alexander Novak. In addition, the Kazak President, Nursultan Nazarbayev, also took part in the meeting.
The agreement which came into effect today is another important milestone in the implementation of the Group’s localisation strategy: “Our future activities will allow us to improve our response to customer-specific requirements,” said Jens Dallendörfer, Managing Director of Wilo Russia. As part of the two and a half hour meeting with the Committee on Eastern European Economic Relations, President Putin and the ministers presented a reform agenda for the coming months. “We are convinced that the framework conditions for the German investors in Russia, especially for the SMEs, will continue to improve,” asserted Oliver Hermes. Wilo has been operating in Russia since 1992.
For Wilo, Russia is one of the most significant single marketplaces worldwide and the Group will be driving its digital transformation in the years ahead. Besides the digitalisation of the production and logistics processes, Wilo will be placing a special focus on digital sales and marketing. “These investments have great potential,” said Oliver Hermes. According to projections of the Committee on Eastern European Economic Relations, German-Russian trade will continually increase. In the first seven months of 2017, the German exports to Russia grew by 24 percent. For 2018, a further increase of around 20 percent is expected in total. Furthermore, the Russian site will act as a platform for all of Wilo’s activities in the Eurasian market.