X5 Retail Group and KAMAZ Sign Cooperation AgreementX5 Retail Group, a leading Russian food retailer (LSE ticker: “FIVE”), and KAMAZ (part of Rostech State Corporation) have agreed to launch a strategic partnership. The cooperation agreement was signed at the St. Petersburg International Economic Forum by Igor Shekhterman, X5 Retail Group CEO, and Sergey Kogogin, KAMAZ CEO.
The partnership envisages developing bilateral ties to bring further improvements to X5 Retail Group's transportation support system, which covers over 50 regions where the Group operates across Russia. Pursuant to the agreement, X5 Retail Group intends to buy trucks from KAMAZ and its official dealers, and use official KAMAZ service centres for maintenance purposes. The model, number and configuration of KAMAZ vehicles meant for purchase will be determined based on the retailer's needs in accordance with the Group's annual fleet expansion plans.
The agreement is designed to establish a lasting win-win partnership with KAMAZ, and to best meet the needs of X5 as regards the expansion of its own fleet.
Igor Shekhterman, X5 CEO, said:
"Over the past few years, KAMAZ has done a great job significantly boosting its product quality, primarily through the implementation of advanced production management methods and further improvements in truck design. The partnership with KAMAZ will help X5 meet the increasing need for new vehicles to expand its own fleet, which is viewed as an essential logistics element of today's retail industry."
Sergey Kogogin, KAMAZ CEO:
"The company's new model range is designed to meet the requirements of the most sophisticated customers. KAMAZ trucks with Daimler components have emerged as a practical alternative to European trucks, proving to be competitive in both price and quality terms. We are delighted to offer X5 Retail Group the best cargo transport solutions, and are confident that KAMAZ vehicles will take their deserved place in X5's fleet."
X5 Retail Group
X5 Retail Group is the leading food retailer in Russia. X5 shares are listed on London Stock Echange (LSE) in the form of Global Depositary Receipts. The Company operates several retail formats, including the chain of conveniently located proximity stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand and Express convenience stores.