Forest Machinery

Ponsse and PacWest sign a retail agreement for the West Coast of the United States

The Ponsse Group has on 7 August 2023, signed a retail agreement with PacWest Machinery (hereinafter “PacWest”) in the United States. At the same time, the companies have signed a deed of sale according to which Ponsse sells its service business operations in Coburg, Oregon, to PacWest. In the future, PacWest will be responsible for the sale and maintenance of PONSSE forest machines in the states of Oregon, Washington and Idaho on the West Coast of the United States.

Ponsse Scorpion

The transaction includes the service centre in Coburg owned by Ponsse North America, Inc, Ponsse’s subsidiary in the United States. The Coburg employees will be offered employment with PacWest as existing employees. In addition to the plot and premises, the transaction includes machine inventory and the spare parts stock. PONSSE services will be transferred to the responsibility of PacWest starting from September 1, 2023.

This change will not interrupt the local PONSSE services, which include machine sales, maintenance and spare part services, and training.

The companies will not make the transaction price public. The price has no impact on the measurement of Ponsse’s value or on the company’s financial result.

Growth expectations for cut-to-length logging

According to Juho Nummela, President and CEO of Ponsse Plc, PacWest’s extensive service business network will strengthen Ponsse’s offering of services.

“The collaboration agreement with PacWest expands our operational area on the West Coast of the United States and provides Ponsse with opportunities to grow its business in the United States. PacWest's extensive network brings Ponsse services closer to our local customers. There is a lot of potential for the cut-to-length logging technology on the West Coast,” Nummela says.

Juho Nummela

All PONSSE forest machine models are based on the cut-to-length method in which the wood raw material is used according to accurate measurements and the environmental impact is clearly smaller than with the tree-length method with respect to fuel consumption and damage to the terrain, for example. With the advanced technology, operator ergonomics and the productivity of work are at an excellent level, contributing to the appeal of the field among forestry professionals.

PacWest Machinery is part of the Joshua Green Corporation, a private company established in the 1890s. PacWest also operates as a dealer for Volvo and Metso in Oregon, Washington and North Idaho. The company has sales and service centers in Spokane, Seattle, Portland, Mount Vernon, Pasco and Eugene.

Ponsse’s services in the United States are the responsibility of Ponsse North America, Inc, established in 1995. In addition to the United States, Ponsse has subsidiaries in Sweden, Norway, France, the United Kingdom, Ireland, the Czech Republic, Uruguay, Chile, Brazil and China, as well as the technology company Epec Oy in Finland. Exports account for 80 per cent of Ponsse’s production at its factory in Vieremä, Finland.