In June 2014, when Terex Trucks became part of Volvo Construction Equipment, the central message of the acquisition was that both companies were stronger together. Two years on, despite a further downturn in demand for haulers in general, a series of product, service and distribution improvements at the Motherwell, Scotland-based company have firmly taken root.
Speaking about the last two years of ownership, Andrew Knight, vice president of strategy and business development at Volvo CE, makes clear that the company has not deviated from its initial plan for Terex Trucks in almost any respect. “When we bought the business, we made some clear statements – we said that we were committed to the brand, committed to the product and committed to the dealers – and we haven’t strayed from that at all with our actions.”
“We bought a business with a well regarded reputation and an established population of products in the field,” he continues. “Machines that need looking after with parts and services, and that offer a good revenue stream. We bought Terex Trucks because it has a range of products that we don’t have – rigid haulers – but also because we could see advantages in having a value brand of articulated haulers in our portfolio. So short-term market volatility aside, the strategic reasoning for getting into this business remains valid.”
Since the acquisition, Terex Trucks has needed to push forward and stabilise its position in the market. This has meant Volvo investing in making products more reliable, as well as easier to use and support. It has also helped promote the brand by championing Terex Trucks at conventions such as Bauma and Intermat.
“The influence of having a large parent isn’t always obvious from the outside, but there’s been a large amount of support given. A lot of time has been spent improving the way Terex Trucks goes to market, how the brand is supported and in strengthening the sales team and dealer network,” Knight adds.
New launches
Terex Trucks rolled out the first fruits of its new line of machines in April, with the ‘Gen 10’ TA400 articulated dump truck leading the pack. At its first Bauma show under Volvo CE management in April this year, Terex Trucks launched the new EU Stage IV compliant, 38t capacity TA400, currently the largest in the maker’s articulated range. It also showcased the improved customer support and service excellence that Knight talks about. Terex Trucks also showcased a range of factory-approved parts and the 65t capacity TR70 rigid hauler.
Speaking about the Bauma 2016 show, Paul Douglas, director and general manager of Terex Trucks, says: “Bauma 2016 was a great show for us. We welcomed over 30 of our dealers to our stand, including our newest German dealer, Klarmann, alongside hundreds of new and existing customers, all of whom were eager to see the new Gen10 TA400. The reaction was overwhelmingly positive considering the challenging global construction equipment markets and general concerns in the global economy. Attendance at the show and the number of visitors to our stand were the highest we have seen in any previous Bauma event.”
But Bauma wasn’t just about the new TA400. Going further into the sales and support revamping that Knight alludes to, Douglas adds: “Visitors to the Terex Trucks exhibition area also got a chance to see how we’ve been focusing on and are investing in our customer solutions, including improved customer support packages and greater spare parts availability – both essential ingredients for maximising machine uptime.”
“Visitors were also impressed by the considerable investment we’ve made in product improvements to both our rigid and articulated dump trucks, as well as in the dealer network, all of which is helping to ensure we’re well positioned when demand returns to the mining, quarrying and major infrastructure segments.”
And the coming months will also see some exciting developments in the company’s product range, explains Douglas, with the 28t capacity ‘Gen10’ TA300 following the TA400 into production within the next couple of months, and the 25t TA250 following later in the year. These new models, developed under Volvo CE’s watch and with investment from the Swedish giant, are a signal that the parent company is confident about its Scottish acquisition.
“Every investment that is made in the business – whether it is product or marketing or infrastructure – is a sign that Terex Trucks will be in a confident position when the markets for these machines improve,” continues Knight. The introduction of the Gen 10 was also a conscious effort to showcase Terex Trucks’ robust simplicity and highlight its position in the articulated hauler market, he explains. “Terex Trucks offers a well-proven, reliable product that can be sold into tough environments and needs a straightforward maintenance approach.”
Flexible approach
“The rigid hauler market is in the doldrums presently, due to low demand for commodities, but it is important that Terex Trucks remains competitive in the market and presents a compelling offer,” Knight says. “Many of our customers have told us: ‘Don’t make the product any more complicated, we run these machines in arduous environments miles away from workshops and civilisation and we need to fix the product in a straightforward and easy way ourselves.’ As a result, Terex Trucks has a strong position in offering a reliable product that can be easily maintained in difficult environments.”
Being competitive also means expanding market presence to cover wider regions and offering tailor-made solution to the specific demands of each region, rather than a one-size-fits-all solution. Terex Trucks treats each of the regions it operates in as a unique challenge.
In pursuance of this philosophy, at Bauma this year Jean-Marie Osdoit, president and CEO of Volvo CE France, and Terex Trucks’ Paul Douglas officially signed an agreement that sees the two companies join their resources in order to revitalise sales and service of Terex Trucks’ articulated and rigid haulers in France.
Under the agreement, the articulated trucks will be managed directly by the Terex Trucks team, while the rigid dump trucks will be promoted by the Volvo CE sales team in France. However, Volvo CE will service both the equipment categories from five Terex Trucks Service Centres opening across France this year.
“We also have plans to expand our distribution in Germany and across the EMEA region,” says Douglas.
In the Middle East, Terex Trucks recently found success with the Oman Cement Company, which found its TR60 dump trucks the most suitable for its quarry operations. Sold through Terex Trucks’ Omani dealer, Al Fairuz, the order also included full back-up support and was clinched in no small measure due to the success and reputation earned by Terex Trucks’ haulers in the neighbouring UAE.
While the Scottish brand is doing well in Europe and further east, the North American market is proving tougher. Addressing the problems the brand faces in North America in terms of market demand, Knight says: “The total market itself is tough, so we never assume the economy will get us out of a problem, but if we continue to do the right things, when the market recovers there’s no reason why Terex Trucks cannot be successful.”
Keeping the faith, Knight emphasises the solid foundation of confidence in Terex Trucks’ long-term potential. The Scottish brand’s recipe of simple robust quality has stood the test of time, helping it to flourish in emerging markets and making it a company worth investing time and money in.
And more is in store in the immediate future. “By the end of 2016 we’ll be in a very strong position, with an experienced, customer-focused dealer network that’s committed to selling and supporting our products, now and in the future,” says Douglas.
“Today, Terex Trucks is a successful company with the backing of a big firm. The benchmark for making a business succeed is to plan for success. And we’re just getting on with it!” Knight concludes.
Terex Trucks in Oman – Cementing its position
When the Oman Cement Company (OCC) issued a tender in June 2015 for two dump trucks for work at a quarry near Muscat, Terex Trucks’ local dealer, Al Fairuz, submitted a bid. Visiting the job-site to see where the Terex Trucks range could shine, Neeraj Jha, senior sales manager at Al Fairuz, reveals it was immediately obvious that the 55t capacity TR60 was well suited to the task at hand.
“Terex Trucks is a relatively new product line in Oman, so to be awarded the tender over the top global brands was amazing. The trucks fit the requirements perfectly, and it was clear from early on their specifications would optimise the efficiency and productivity of the working day at the Oman Cement Company,” says Jha.
Built at the Motherwell factory in Scotland, the TR60 is fitted with a Cummins six-cylinder 19l engine that boasts gross power of 700hp and maximum torque of 2,981Nm. The drivetrain has a gear reduction that provides excellent rimpull, powering the rigid hauler up the steepest inclines and rough terrain. Transmission and rear brake retardation systems are standard, while a high capacity body with exhaust heating makes for optimum retention and cleaner dumping.
The trucks will work three eight-hour shifts per day collecting limestone, quartzophyllades, iron ore and kaolin from the quarry, and transporting the blasted raw materials to the crusher. Jha explains: “The machines will only get about two hours off in 24 hours, and that’s only due to operator changeovers – otherwise it would be work all day.”
Terex Trucks began to win over OCC when Al Fairuz made a presentation of what 65 years of hauler manufacturing looks like. This was followed by a visit to the neighbouring UAE to see the trucks in action. Suitably impressed, OCC awarded the tender to the TR60s.
“Once we received the order, we performed the PDI [pre-delivery inspection] in January and all the staff at OCC were invited, so the training process could begin before the trucks even arrived on-site,” says Jha. The training process continued when the machines went live. Al Fairuz spent a further two weeks on site, training mechanics and operators to ensure seamless operation.
New launch – Terex Trucks TA400
Terex Trucks showcased its new TA400 articulated dump truck (ADT) at this year’s Bauma show. The truck is the first new product it has come out with since being purchased by Volvo CE from Terex in 2014. It is also the first in the series of the new generation 10 ADTs that Terex Trucks has developed under Volvo CE’s management and will launch throughout this year.
The new TA400 is a 41.8t heavy-duty off-road truck and is powered by a 444hp Scania DC13 engine. The ADT uses selective catalytic reduction combined with exhaust gas regeneration to meet Tier-4 Final emissions regulations and does not require a diesel particulate filter, according to Terex.
The unit has a heaped capacity of 23m3 and its hydraulic hoses, electrical interfaces and transmission mountings have been upgraded over those seen in Terex Trucks’ previous models. The company also says that hydraulic component life cycles in the new ADT are prolonged through the use of magnetic pressure filters that reduce the risk of contaminants entering the system.
Stopping power comes from force-cooled multi-disc brakes, supported by an electronically activated exhaust brake and a six-stage modulating transmission retarder. A high-performance transmission oil extends service intervals to up to 6,000 hours.