Ponsse to strengthen its operations in the Czech Republic
Ponsse Group will be independently responsible for its sales, spare parts and maintenance services in the Czech Republic. Today on 4 February 2022, Ponsse signed a deed of sale, in which it agrees to purchase all shares in KŘENEK FOREST SERVICE s.r.o (hereinafter “Krenek”), its PONSSE forest machine and service dealer in the Czech Republic. The aim is that PONSSE services in the Czech Republic will transfer to Ponsse Group by 1 April 2022. The company will operate as a subsidiary wholly owned by Ponsse.
Krenek’s employees will continue in the service of the purchased limited liability company under their current employment contracts and benefits. Ponsse has prepared a comprehensive integration plan that will ensure a positive continuation of the local business and sufficient induction for the employees.
The business arrangement has no impact on the previous guidance. The price of the transaction between Krenek and Ponsse will not be made public by mutual agreement, because the purchase price has no impact on the measurement of Ponsse’s value. The purchase price will be paid in cash on the condition that certain requirements set for the transaction are fulfilled. Ponsse will finance the acquisition from its cash assets.
PONSSE forest machines have a market share of about 20 per cent in cut-to-length (CTL) harvesting in the Czech Republic, and there are 290 PONSSE forest machines in the country.
Brought together by the values of traditional family-owned companies
“We’re proud to continue Krenek’s work in the Czech Republic. It’s been an honour for Krenek’s family-owned business to take care of customer relationships with relentless honesty and commitment, which also lays the foundation of our operations. We promise to provide our local customers with continuously developing high-quality PONSSE solutions and services, also in the future, and we see a lot of potential in this market. Our local employees will play a crucial part in this,” says Juho Nummela, President and CEO of Ponsse Plc.
This change will not interrupt the local PONSSE services, which include machine sales, maintenance, spare parts services, and training. Ponsse will continue to operate in Hostinné in the same facilities in which Krenek’s services are currently located.
Krenek has been Ponsse’s official dealer since 2013, having operated for ten years through Wahlers Forsttechnik GmbH, Ponsse’s dealer in Germany. In 2020, a total of 34.5 million m3 of wood was harvested in the Czech Republic, with nearly all harvesting operations centred in areas damaged by bark beetles. The normal annual harvesting volume in the Czech Republic is approximately 13–17 million m3. A sustainable level of harvesting is 22 million m3 per year in the country, allowing forests to regenerate more quickly than they are harvested.
Earlier in November 2021, Ponsse announced its intention to establish a subsidiary in Chile as well. Following the establishment of these new subsidiaries, Ponsse Group consists of 14 subsidiaries and 44 dealers. In addition to its international subsidiaries, Ponsse Group includes the technology company Epec Oy in Finland. Exports account for 80 per cent of Ponsse’s production at its factory in Vieremä, Finland. In addition to the company to be acquired in the Czech Republic, Ponsse has European subsidiaries in Sweden, Norway, France, the UK, and Ireland.
Vieremä, Finland, 4 February 2022
President and CEO
Juho Nummela, President and CEO, tel. +358 400 495 690
Nasdaq Helsinki Ltd
Ponsse Plc specialises in the sale, production, maintenance and technology of cut-to-length method forest machines, and is driven by a genuine interest in its customers and their business operations. Ponsse develops and manufactures sustainable and innovative harvesting solutions based on customer needs.
The company was established by forest machine entrepreneur Einari Vidgrén in 1970 and has been a leader in timber harvesting solutions based on the cut-to-length method ever since. Ponsse is headquartered in Vieremä, Finland. The company’s shares are quoted on the NASDAQ OMX Nordic List.