AWL’s installed base is growing in Russia
Crisis impact on Russia
Insights into the Russian market all show the same image: the Russian economy has been struck hard. Automotive sales have dropped by 51.2 percent, and compared to other countries, Russia shows the largest losses by far. Inflation is high and the situation is not helped by the instable political environment. The expected economic recovery of other BRIC countries, such as India and China, is rated higher than the recovery of the Russian economy. However, there are some positive trends. OEMs and 1st Tiers are still developing new green field plants in Russia, and their intention to join forces creates a positive atmosphere for the automotive industry for the coming years.
Focus on Russia
Being the European partner in automated welding has been AWL’s main goal over the last couple of years, and to achieve that, a large installed base in each European country, in addition to good service coverage, is essential. To qualify the different countries, AWL researched the installed base of OEMs and 1st Tiers, the degree of automation, political risks, etc. On the basis of this research, AWL made a strategic decision to develop the Russian market, and although it had no previous experience in Russia, exploratory visits were made. These turned out to be very successful and the first order was signed in 2008.
This resulted in a 5% AWL sales turnover for Russia in 2008 and a 10% sales turnover in 2009.
AWL and its Russian organisation
In 2008 AWL invested in a local sales representative who is able to create strong relationships with our Russian partners, one of which is Dukon, the machine trade company. With a wide sales network and, equally important, a skilled technical service department, Dukon is well-known in Russia. The presence of AWL in Russia is strengthened by two experienced European Business Development Managers who are the driving force behind each commercial action. These managers are also able to support European companies intending to expand their production facilities to Russia and those considering doing so.
Reasons for success
AWL’s success comes from its ability to reassure customers. AWL not only delivers world-class, quality machinery, it also guarantees reliable quality product output. Furthermore, AWL is accountable for the complete project until the machine is up and running at the local production site. By offering broad technical support on a local level, and by integrating language-independent intuitive HMI in the machines, AWL has shown itself to be a strong partner in Russia. And it has the references to prove it, both in the automotive market and in general metal industries.