Russia – The joint venture between Russian Machines, a subsidiary of the Basic Element industrial group, and AGCO, a manufacturer of agricultural equipment, will enable both companies to strengthen their presence in the Russian market.
With the main objective of achieving a leadership position, the JV will localise production and adopt state-of-the-art technology. Russian Machines will provide manufacturing competencies and infrastructure, while AGCO will contribute localisation, distribution and the introduction of new products and technologies.
Following the agreement in March 2013 to establish a JV, the two companies worked together on a contract basis for assembly operations at a 12.5-hectare manufacturing facility in Golitsyno, outside Moscow. The current output of Challenger and Massey Ferguson tractors and harvesters will be followed by Fendt and Valtra products.
The next step towards greater localisation will involve the assembly of Massey Ferguson 7347 and 7370 combine harvesters, plus Massey 7000 and 8000 series tractors – products which are expected to have more Russian parts.
“In partnership with AGCO, we are bringing to Russia advanced international technologies, broadening the RM product portfolio range and expanding our competencies in agricultural equipment production,” said Manfred Eibeck, CEO, Russian Machines. “The AGCO-RM joint venture has a huge potential for development, enabling us to meet the demand in Russia.”