Strong together!

Russian Machines and AGCO completed a deal to establish an AGCO-RM joint venture for production of agriculture machinery.

The strategic alliance between AGCO, global producer of agriculture machinery, and Russian Machines Corporation will allow both companies to boost their positions in the Russian agricultural machinery market. In this partnership, Russian Machines are going to enter the mechanical engineering segment, which is new to the Corporation, and enhance their positions in one of the most promising international markets. In turn, AGCO is contributing the best technologies and innovations available for farmers all over the world.

The project implementation started in September 2013 when the companies signed a joint venture agreement. A facility for agriculture machinery assembly was established in Golitsyno along with logistics centres for distribution of final products and spare parts. SKD assembly of the Challenger and Massey Ferguson machinery is underway, to be followed by manufacture of Fendt and Valtra machines by the end of the year.

The next step towards higher localisation is the plan to assemble the most popular self-propelled machines – the Massey Ferguson 7347 and 7370 8-walker combine harvesters and Massey Ferguson tractors of the 7000 and 8000 series.

“In partnership with AGCO Corporation, we are expanding our competencies in agricultural equipment production. The AGCO-RM joint venture has huge potential for development, enabling us to meet the demand in Russia,” says Manfred Eibeck, Director General of Russian Machines Corporation.

In turn, Rob Smith, Senior Vice President, General Manager EAME for AGCO, noted that the joint venture with Russian Machines Corporation will enhance the market standing of the company by offering Russian farmers not only agricultural machinery and equipment assembled in Russia, but also bringing in efficient and innovative solutions aimed at raising the performance of their businesses.”