Russia – Tübingen-based tool specialist in Germany, Paul Horn, has now a subsidiary in Moscow, Russia. Horn Rus LLC opened at the start of 2018 and has its own Russian team.
Horn Russ LLC, according to Horn, will be the centre of the company's market activities for the Russian Federation. It will, for now, focus on existing and well-known customers from the automotive, energy and aerospace industries as well as their suppliers, offering the whole range of Paul Horn's products and services.
Covering an area of 300 m², the Moscow office houses the sales and administration departments, the storage area as well as the company's facilities for delivering customer training. Horn says that the same short delivery times similar to those in Germany for orders of special tools will apply in Russia as well. Through its systematic approach, Horn notes that it will replicate the company's competitive advantage together with quality and precision in Russia, which, it says, will be a key criterion for success in the Russian market.
The local team heading Horn Rus are Managing Director Alexander Dick, Pavel Glazyrin as country sales manager and operations manager is Anastasia Dododnova. Commenting on the bearings in the country, Dick notes: “Russia is a growing market. Quality, ever increasing efficiency, speed and repeatability are core requirements. In 2018, the Metalloobrabotka and Neftegaz exhibitions will offer the ideal platform for presenting our solutions and capabilities.”
Current market situation in Russia
In the first nine months of 2017, German machine building industry exports to Russia amounted to €4 billion – registering a growth rate of about 23%. At its peak in 2012, prior to the economic crisis, German exports reached €6 billion in the first nine months of that year. It will likely be another two and a half years based on the current growth rate to reach this volume again, according to a report by the VDMA Russian liaison office.
Growth in agricultural technology continues to reign as number 1. In building and construction, the upturn is mainly attributed to road construction projects, with the building sector remaining at the previous year's level. An explanation possibly being the construction industry experiencing a temporary boom in infrastructure because of the 2018 FIFA World Cup.
Although machine tools are likewise seeing a small upturn, the decline in sales over the previous years mean there is more catching up to do than the mechanical engineering sector as a whole if they are to return to pre-crisis levels. In addition to economic developments, sanctions also play a big part here. As far as cutting tools are concerned, the negative sales trend that started in 2013 has been reversed and is now heading in the positive direction.
Overall, almost all of the ten strongest export sectors in Russia have been growing. This suggests that the upturn is not simply being driven by a few major projects in particular sectors but is indicative of a general trend, the report notes.