Agco agrees Russian deal
AGCO reports it has now entered into an extensive agreement with the Russian Ministry of Agriculture to manufacture agricultural machinery in Russia.
Terms outlined in the agreement include proposals for the local assembly and production of tractors, combine harvesters and implements from Agcos product line. Tractors will be manufactured in Saransk City, Mordovia, through an agreement between JSSC Sarex and Agco.
The production of combines, drills, balers and other types of farm machinery through selected enterprises in primary agricultural regions of the Russian Federation is reported to be under evaluation.
Agco also says it will be establishing dealer and service centres – as well as providing a leasing company.
The company has agreed to assist the Russian Federation in obtaining financing of $500m through US, European and other financing agencies. *