UK-based JCB and a Russian civil engineering contractor announced the £23 million contract on the second day of the Business Secretary's visit to Russia.
The Russian engineering contractor MOCT has signed up to buy hundreds of British diggers and generators as part of work on road, bridge and tunnel improvements to the Winter Olympic transport infrastructure at Sochi. The machinery will be used again at Vladivostok, for the construction of a road bridge in advance of the 2012 Asia Pacific Economic Co-operation (APEC) Summit.
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JCB announced the contract in Moscow today, as Tim Burnhope, managing director of JCB Sales joined the delegation of business leaders to Russia led by Business Secretary Lord Mandelson.
The news comes just days after JCB's agreement by 2,500 UK staff to take a pay cut and work a four-day week to help it through the economic downturn.
Speaking from Russia, Peter Mandelson said: "We can move markets as well as earth if we keep the business relations right between Russia and the UK. Trade is growing at more than 25% a year, year on year.
"Russia wants British goods and investment and Britain likewise welcomes Russian investment in our country."
Tim Burnhope, Managing Director of JCB also said: "MOCT is one of the largest civil engineering contractors in Russia. This substantial order is a further endorsement of JCB products and the service and support offered by our dealer in European Russia, Lonmadi. Lonmadi recently opened a new depot in Sochi to support their sales efforts in the region - we are delighted that the investment in premises and staff has paid off so quickly."
(JM)
