Kalmar Industries has signed a contract to service and maintain 92 materials handling machines for Ovako Steel, a Kalmar customer for almost 20 years, in Hofors, north of Stockholm, Sweden.

Ovako Steel is the world's leading producer of steels for rolling bearings and a major producer of low-alloy special steels. The contract, which has already started, covers regular servicing, finance, insurance and administration. The terms were not disclosed.

The contract includes maintenance of Kalmar and other trucks, traction vehicles, straddle carriers, wheel loaders, side loaders, diesel and electric counterbalance forklifts and warehouse trucks.

Tailored to the client's requirements, the maintenance part of the contract takes into account the relative importance of each piece of equipment in yard operations.

Ovako Steel purchaser Reine Wahlen said Kalmar manufactured the company's most important machines.

"In addition to the after-sales service Kalmar provides, its expertise in manufacturing machines key to our business is essential, given the tough environment in which these vehicles work," he said.

Susanne Nyrell, who is responsible for Kalmar rentals in Sverige, said Ovako had "very tough" demands for availability of machinery.

"The contract takes a lot of the administrative headaches away from Ovako and allows it to concentrate on core competencies. Constant communication with the customer, combined with flexible planning, is an absolute necessity," she said.