AGCO is teaming up with Russian Machines on a new joint venture involving the manufacture and distribution of agricultural equipment in Russia.
Operations are expected to begin in early 2014 at a facility in Golitsyno, near Moscow. Together, the two companies will have equal ownership and will invest approximately $100 million over the next three years. The vision involves AGCO bringing more of its high-tech products to Russia, with Russian Machines facilitating production and local business development.
"This joint venture is a very significant step in AGCO’s growth strategy for the Russian market,” said Martin Richenhagen, AGCO chairman, president and CEO. “The agricultural sector in Russia has significant potential but needs modernization and efficiency gains. The joint venture between AGCO and Russian Machines is to join forces in bringing local farmers a wide range of professional farming equipment, technologies, services and solutions.”
The new manufacturing facility will have an area of 12.5 hectares, which includes 27,000 square meters of production facilities. There are also plans for a Model Farm and a training center for customers and dealers.
The venture is aimed at offering comprehensive agricultural solutions to medium and large-scale farmers, including financing, insurance and other support services.