MOSCOW--(BUSINESS WIRE)--Sep. 17, 2013--
AGCO, Your Agriculture Company (NYSE: AGCO), a worldwide manufacturer
and distributor of agricultural equipment, and Russian Machines, part of
the Basic Element group and one of the leaders in the Russian machinery
sector, today announced the creation of a new joint venture in order to
manufacture and distribute agricultural equipment and replacement parts
in Russia. AGCO and Russian Machines plan to make a total investment of
approximately US$ 100 million in the joint venture over the next three
years.
The joint venture is expected to begin operations in early 2014, with
AGCO and Russian Machines each having an equal ownership. The
manufacturing facility will be located in Golitsyno, near Moscow, with a
total area of nearly 12.5 hectares including 27,000 square meters of
production facilities. The site will include a product show room, a
training center and will feature state of the art manufacturing
processes. The training center will offer courses designed to educate
customers and dealers on the latest agri machinery technologies.
Additional plans include the creation of a Model Farm, based on the
agricultural business of Basic Element, to develop and disseminate
modern full-cycle agricultural solutions that help to improve efficiency
of Russian farmers.
The joint venture plans to offer comprehensive agricultural solutions
for medium and large scale farmers, including support services such as
financing and insurance, leveraging Russian Machines’ supply chain
strengths and providing AGCO with a strong local partner. AGCO will
introduce more of its high-tech products into the Russian market, while
Russian Machines will provide the necessary production capabilities and
support with local business development expertise.
"This joint venture is a very significant step in AGCO’s growth strategy
for the Russian market,” said Martin Richenhagen, AGCO Chairman,
President and Chief Executive Officer. “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.”
Siegfried Wolf, Chairman of Russian Machines commented, “We believe that
the combination of AGCO's technology driven products with Russian
Machine’s local production capabilities will lead to a highly successful
business operation that will enhance the shareholder value of both
companies."
ABOUT AGCO
AGCO, Your Agriculture Company, (NYSE: 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 products are sold through five core
machinery brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and
Valtra® and are distributed globally through 3,150 independent dealers
and distributors in more than 140 countries worldwide. Founded in 1990,
AGCO is headquartered in Duluth, GA, USA. In 2012, AGCO had net sales of
$10 billion. www.AGCOcorp.com
ABOUT RUSSIAN MACHINES
Russian Machines – a major Russian diversified corporation which is
part of Basic Element Group. Russian Machines comprises industrial and
engineering assets in such segments as automotive OEM, automotive
components, rail industry, aircraft OEM, road construction machinery and
military vehicles. The corporation includes 24 enterprises located in 12
regions throughout Russia and employs over 68000 people. The official
corporate internet site is www.rm.ru.
Safe Harbor Statement
Statements which are not historical facts, including expectations
regarding the development, productions and sales of products in this
region, are forward-looking and subject to risks that could cause actual
results to differ materially from those suggested by the statements.
These risks include possible declines in demand for products as a result
of weather, demand and other conditions that impact farm income, actions
by producers of competitive products, and the general risks attendant to
acquisitions. Further information concerning these and other factors is
included in AGCO’s filings with the Securities and Exchange Commission,
including its Form 10-K for the year ended December 31, 2012. AGCO
disclaims any obligation to update any forward-looking statements except
as required by law.
Source: AGCO
For AGCO
Rebecca Fabian, +1.646.415.8518
rf@stockheim-media.com