Russian state owned company and a supplier to the Military, Industrial Machinery Group (IMG), has chosen Denmark's Johnsen Oil as a partner and supplier of filtration solutions, technology and equipment into the Russian market. The companies signed an extensive supply contract on January 27, 2011 with IMG represented by its Deputy General Director, Mr. Igor Vorontsov. Johnson Oil is a supplier of high-quality equipment for filtration of different oils for internal combustion engines and hydraulic gear systems, as well as equipment for water removal from diesel.

Based on estimates, the cooperation contract is worth Euro 40 million in product value per year for Johnsen Oil, starting in 2012. To fulfill the contract, Johnsen Oil, with subcontractors, undertakes to supply IMG with filtration solutions and equipment in accordance to specific orders and requirements received.

IMG plans to distribute Johnsen Oil products among its network of clients, including OJSC 'Russian Railways', which as the second largest rail network in the world is a major contributor to the Russian economy. Other IMG clients to benefit from the contract with Johnsen Oil include companies within the 'Russian Technologies State Corporation', an extensive organisation responsible for supporting the development of high-technology in various sectors of industry including the defence industrial complex.

The Parties have already estimated the need for Johnson Oil's Hydraulic Station solutions, and IMG has decided to make a purchasing plan for a volume requirement of 1500 units of various sizes and models per year, after a building up period of 12 months. Additionally, IMG has made a purchasing plan for a volume requirement of 1500 Johnson Oil Diesel Filtration station filtration units of various sizes and models per year, after a building up period of 12 months.

Tags: Industrial Machinery Group (IMG)