Agricultural equipment maker
) and Russian Machines have entered into a 50-50 joint venture to
manufacture and distribute agricultural equipment and replacement
parts in Russia. The joint venture will improve efficiency and
farm income of the Russian agricultural sector through
Russian Machines is a unit of Basic Element group, involved in
the modernization of machinery-building enterprises, introduction
of innovative technologies as well as the manufacture of new and
competitive products. In the joint venture, Russian Machines will
its share production capabilities while AGCO will introduce its
high-tech products into the Russian market.
Per the joint venture, AGCO and Russian Machines will invest
around $100 million over the next three years to build a new
plant near Moscow. The production facility which covers an area
of 27,000 square meters, include a product show room and training
The training center will offer courses to educate customers and
dealers on the latest technologies related to agriculture along
with the modern manufacturing processes. In addition, a model
farm will be established for the development of agricultural
solutions to make Russian farmers more efficient.
Through this joint venture, medium and large-scale farmers will
also benefit from Russian Machines' extensive supply chain and
gain a wide range of support services such as financing and
insurance with the help of professional farming equipment,
technologies, services and solutions.
This is a significant step in AGCO's growth strategy for the
Russian market. The joint venture, which is expected to begin
operations in early 2014, will help in enhancing the shareholder
value of both the companies.
AGCO remains committed to its plans of expanding its business in
international markets. It expects elevated agricultural commodity
prices in 2013 to support healthy farm income and sustain
Duluth, Ga.-based AGCO is a global leader focused on the design,
manufacture and distribution of agricultural machinery. AGCO
supports more productive farming through a full line of tractors,
combines, hay tools, sprayers, forage equipment, tillage,
implements, grain storage and protein production systems, as well
as related replacement parts.
AGCO currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the machinery and farming industry are
Alamo Group, Inc.
). While Alamo Group and Kubota Corporation sport a Zacks Rank #1
(Strong Buy), Lindsay holds a Zacks Rank #2 (Buy).
AGCO CORP (AGCO): Free Stock Analysis Report
ALAMO GROUP INC (ALG): Free Stock Analysis
KUBOTA CORP ADR (KUBTY): Get Free Report
LINDSAY CORP (LNN): Free Stock Analysis
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