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Heavy equipment manufacturers halt business in Russia


March 11, 2022
By Rock to Road staff
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As Russia continues its invasion of Ukraine, numerous heavy equipment manufacturers  are pausing or severing business ties with the country.

John Deere, Caterpillar, Liebherr, Hitachi, Komatsu and Trimble have announced they will pause exports in Russia.

John Deere announced it will suspend shipments of machines to Russia as well as Belarus.

“John Deere is deeply saddened by the significant escalation of events in Ukraine. The safety, welfare and well-being of our employees in the region remains our top priority, and we continue to support and maintain close communication with our affected teams, providing necessary resources, when possible,” Deere said in a statement. “We continue to monitor the situation closely while we fully abide by U.S. and international sanctions.”

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Hitachi Construction Machinery has decided to gradually stop production at Hitachi Construction Machinery Eurasia LLC, its regional headquarters responsible for manufacturing and sales in Russia and the CIS. The company will also halt exports from Japan to Russia until further notice, due to the potential risks associated with the business.

“Hitachi Construction Machinery Co., Ltd. is monitoring the ongoing developments in Russia and Ukraine and hopes for a peaceful resolution as soon as possible, just like everyone around the world,” the company said in a news release

Caterpillar will suspend operations at its Russian manufacturing facilities.

“We are deeply saddened by the tragic events continuing to occur in Ukraine and hope for a peaceful resolution to the crisis,” Cat said in a news release. “Operations in Russia have become increasingly challenging, including supply chain disruptions and sanctions, and we are suspending operations in our Russian manufacturing facilities.”

As well, Komatsu will suspend shipments, due to the current supply chain disruption and the uncertainty of the financial and economic situation.

“Komatsu is deeply concerned about the current situation in Ukraine and is closely monitoring developments, the manufacturer said. “The company sincerely hopes that the situation is settled peacefully as soon as possible.”

Trimble has also ceased selling its products and services in Russia and Belarus, noting its primary focus continues to be on the welfare of employees and partners in Ukraine and Russia.

“Trimble strongly condemns the unprovoked invasion of Ukraine by the Russian government,” a statement on Trimble’s website explains.

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Metso Outotec temporarily ceased its deliveries to Russia. Metso Outotec’s customers in Russia operate in several mining and metals processing sites. The company noted capital projects are typically long with deliveries taking place over the course of several years. Sales from Russia represented about 10 per cent of Metso Outotec’s annual sales in 2021.

The Liebherr Group announced its support for sanctions imposed on Russia.

“We are currently implementing these extensive sanction measures,” Liebherr said in a statement. “This will have an impact on Liebherr’s business in Russia. Since the situation is highly dynamic, it is too early to make concrete statements as to the extent of this impact. Therefore, we cannot conduct a final assessment.”

Heavy equipment OEMS provide aid to Ukraine

Several heavy equipment manufacturers are providing aid to the humanitarian effort in Ukraine.

The John Deere Foundation is working directly with several organizations, including multiple United Nations agencies, to mobilize resources to support Ukrainians impacted by the crisis.

Through the Caterpillar Foundation, Cat is donating more than $1 million to support both urgent and long-term needs of the Ukraine humanitarian crisis.

The Liebherr Group’s parent company is making donations to the Swiss Red Cross (SCR) and the United Nations Refugee Agency (UNHCR) to support both organizations’ effort to support the people in the war zone as well as refugees.

The Trimble Foundation is also contributing to urgently needed humanitarian relief for displaced Ukrainian citizens.