OREANDA-NEWS. On January 28, 2007 Concern “Tractor plants” and leading transnational machinery corporation AGCO Corporation (NYSE: AG) declared about creation of joint venture, which must become exclusive supplier at the markets of Russia and CIS countries SISU engines of 80 - 350 hp, corresponding to the Tier II and Tier III standards, reported the press-centre of Tractor plants.

On 28 of December 2007 by parts have been signed relevant agreement and contract on delivery of 750 assembled diesel engines SISU for agricultural equipment produced by enterprises of the Concern “Tractor plants”. Participants of the agreement will receive 50% share each in joint capital of joint venture. Future enterprise will be situated at one of the Concern’s enterprise in Vladimir.

New subsidiary company of largest Russian machinery holding and one of the world leaders in the sphere of manufacture of engines will become first company at the markets of Russia and CIS countries that produces industrial assembly of three, four and six cylinders water cooled import diesel engines in the amount of 6 models in the volume of 20 000 units per year. The beginning of the production is intended for the 4 quarter 2008, reach of rated capacity - in 2012. Work schedule foresees localization of components, organization of service and sales of diesel engines as a part of Concern’ assortment, so as at the free market of Russia and CIS countries. Engines will be produced under license received by JV, that allows to use progressive technologies of SISU Diesel Inc. and will be intended for agricultural equipment, generator sets, municipal machines, water transport and road building machines.

According to the President of the Concern “Tractor plants” Mikhail Bolotin, “Decision about creation of joint venture is stipulated by objective needs of Russian and CIS countries markets in organization of manufacture of the family of modern multipurpose diesel engines of 80-290 hp. And exactly in this diapason at the Russian market there is a gap as the result of power augmentation of batch produced diesel engines. Usage of modern technical decisions of world level will allow to increase reliability and export potential as Concern’s products so as other native potential consumers of these engines”.

As has said during signing of the agreement Senior vice-president and General manager of AGCO in the sphere of engines Hubertus Muelhauser: “New ecological requirements to atmosphere emissions and also existing need in reliability of the machines put forward to the forefront working characteristics of engines during valuation of exponents of purchased machines by Russian and CIS countries companies”.

In parallel with organization of assembly plant, at the Russian enterprises - producers of components and spare parts will be executed mastering of assembly units and details of new engine. To the localization in Russia of the most heavy duty configurations will be attracted famous world producers. Cooperation in this field is planned by way of creation of joint ventures for components. According to Mikhail Bolotin: “Steps taking by the Concern “Tractor plants” in this direction will allow to fasten the process of creation of liquid market of native techniques, assisting the effective realization of national project in the field of agrarian - industrial complex, directed to the providing of food safety of Russia”.

Concern “Tractor plants” - Russian machinery holding, one of the largest companies of heavy-duty machinery in the world and leading not only at the internal market, but also in several countries of near abroad. In product briefcase of the holding are: industrial, defense, agricultural, municipal, construction, forestry equipment, and also components and spare parts, production for railways.

Concern consolidates 14 production sites, 3 trade and service companies, several special designing bureaus and scientific institutes. Total number of employees nearly 45 000. Equipment produced by the holding is used in more than 40 countries of the world. Total annual sales volume in 2007 exceeded 1,35 bln. dollars, growth per year is 31,5%.

AGCO Corporation is one of the world leaders in development, manufacture, marketing and distribution of agricultural equipment in more than 140 countries. Head office of the corporation is located in Duluta (Georgia, USA). Production capacities are in North and South America, Europe.

AGCO Corporation offers full assortment of equipment for agricultural works. In nomenclature are wheeled and crawler tractors of all power range, combines, forage equipment, spreaders, fodder harvesting and soil treatment mounted equipment. Corporation created global network of its products deliveries, in which are more than 3900 independent dealers and distributors all over the world.

AGCO products are sold under row of brands, among which are AGCO®, Fendt®,Valtra®, Challenger®, Massey Ferguson®, Sunflower®, Hesston®, Spra-Coupe®, RoGator®, White™ Planters, TerraGator®, Gleaner®, New Idea®, Farmhand®, Glencoe®, LOR*AL®, Tye®, Willmar®.