Vimek nets its biggest ever order valued at three annual volumes.

Forestry machinery producer Vimek based in Vindeln has secured the biggest order in its history. The SEK 160 million deal includes 126 forwarders and harvesters for the Belarusian state company State Forest Enterprises. The order is to be fully funded by the World Bank.

Belarus is investing heavily in the development of an environmentally friendly forestry industry and has been granted a USD 40 million loan from the World Bank to help achieve this. As part of this project, State Forest Enterprises is investing in a large number of environmentally friendly and light forest machines. Vimek won a public tender despite tough competition from seven other forest machinery manufacturers to gain the right to supply the machines. The tender covered four different machine models and sizes, two of which will be supplied by Vimek.

“There’s no denying this is a great feeling. This order secures production for a long while. At the moment the deal covers 126 machines to be delivered over roughly three years, but if everything pans out well, volumes may well grow,” says Fredrik Lundberg, CEO of Vimek.

The order is for 126 complete forest machines – 74 Vimek 404 T6 harvesters, and 52 Vimek 610.2 forwarders.

“Thanks to the funding provided by the World Bank, this is a very safe deal for us,” says Fredrik.

Aside from supplying the machines, additional sales, staff, and expansion come in the form of the service, support, and spare parts required by the after-sales market.

“Not only do we have an extensive and secure order backlog, the need for spare parts will also increase markedly over the next five years. This creates fantastic opportunities for our continued expansion and boosts our competitive edge thanks to increased volumes,” Fredrik continues.

Record year for light forest machines

Vimek is a leading manufacturer of light equipment for low-impact forestry. The company has experienced strong growth in recent years. Last year was a record year for Vimek with sales of almost 70 machines and a turnover of SEK 62.5 million. Half of the company’s forestry machines are sold in Sweden and the Nordic region, with the rest sold elsewhere in Europe.

Belarus is no stranger to Vimek’s products. Twelve machines were sold and delivered to Brest in south-west Belarus five years ago. The machines have become popular and attracted interest from other nearby markets.

“We’ve been selling machines to Belarus for several years, which has worked very well in terms of maintaining our competitive edge. Our machines are a great fit with Belarusian forest stands,” says Fredrik, who also explains that this is one of the reasons why Vimek's bid won State Forest Enterprises' tender.

Driver simulator training

In addition to the supply of machines, Vimek’s winning bid includes a training package and driver simulator. The simulator is designed for training purposes, as well as to demonstrate the difference between the use of larger and smaller machines in thinning stands. The simulator is very realistic and includes all the levers and knobs of a regular machine.

“It’s important that users gain knowledge in how to operate Vimek’s machines in a virtual environment. The simulator features a full buckling system, which gives the trainee a realistic experience,” Fredrik explains.

Recruitment drive

Vimek has gradually developed its organisation for a number of years in terms of marketing, production, design, development, and after-sales. Product development, assembly, and finishing of complete machines will continue to take place at the company’s Vindeln factory, which will require a recruitment drive.

“We have a clear plan for how to manage this considerable increase in volume. We recruited three new assemblers last autumn, and now that we have won the tender, we’ll continue on our recruitment drive,” Fredrik says.

For more information, please contact:

Fredrik Lundberg, CEO Vimek AB: +46 (0)933-135 20, +46 (0)70-399 22 86, fredrik.lundberg@vimek.se