The Ukraine war has had a significant impact on the global economy. The manufacturers of forest machines are also affected, because as far as is known they have probably cut all their business relationships with Russia until further notice. Kesla Oyj already announced on February 25th that due to the EU sanctions, planned deliveries worth more than \u20ac10m were cancelled. John Deere Forestry, which makes around 20% of its sales in Russia, also stopped all sales to Russia on February 25, and spare parts are no longer delivered.<\/p>\n
Tigercat, EcoLog and Komatsu Forest, Sampo Rosenlew and Ponsse made the same decision. At Ponsse, this decision also applies to Belarus. The company is also discontinuing the activities of the Russian subsidiary. Like John Deere, Ponsse generates around 20% of its sales in Russia and Belarus. At Sampo Rosenlew, the proportion is even higher, but the company is mainly present in Belarus.<\/p>\n
Can you redirect Russia machines?<\/strong><\/p>\n The manufacturers are not only stuck with finished machines, but also with those that are currently being produced. Simply redirecting them to other countries is unfortunately not a viable option. This is not possible because they are equipped with Stage IIIA engines. At best, machines that are not finished could still be converted and sold with these engines to South America or Canada.<\/p>\n Reasons for the delivery stop<\/strong><\/p>\n On the one hand, the manufacturers stopped exporting voluntarily to show solidarity with Ukraine. The forest machines or at least some of their components are also subject to the sanctions. Two weeks after the invasion of the Ukraine, the agricultural machinery manufacturer John Deere checked which regulations had to be observed in detail. Problematic are, for example, control devices, GPS receivers or on-board computers, which could also be used for war purposes. Last but not least, the exclusion of many banks from the Swift system is a problem, as well as the collapse of the ruble. Who still delivers machines to Russia when the buyers can no longer pay for them and there is no longer any credit default insurance?<\/p>\n Are delivery times going down now?<\/strong><\/p>\n In Germany, some market participants are hoping that the suspension of deliveries to Russia will free up space in the plants and lead to shorter delivery times. But you shouldn't necessarily count on that. Many suppliers obtain raw materials, steel or other parts from Russia or the Ukraine, which are also not suppliers - just think of the cable harnesses for the automotive industry. The logistics problems that arose in the course of the corona pandemic have not disappeared into thin air either. All of this is not easy to see through in detail. Only one thing is certain: the prices for forest machines and spare parts will continue to rise.<\/p>","protected":false},"excerpt":{"rendered":" The Ukraine war has had a significant impact on the global economy. The manufacturers of forest machines are also affected, because as far as is known they have probably cut all their business relationships with Russia until further notice. Kesla … Continue reading