Plans Made To Buy Tractor Manufacturer Mccormick 13/11/2007
Plans are being made by KamAZ to buy ‘part of the capacity’ of the British tractor manufacturer the McCormick company. They are planning to buy the company for $5-7 million and relocate to Russia. This is because McCormick believes that the products from McCormick can occupy 10% of the Russian tractor market. KanAZ is the largest manufacturer of large trucks and McCormick is run by the Itlaian holding Argo. Agricultural tractors that are supplied by McCormick have a power gage that ranges from 70 to 280 horsepower. McCormick has a total of 1100 and last year Argo decided to close part of McCormick works and relocate it to its Landini plant in Italy.
A spokesman from KamAZ sai that there are plans to buy McCormick’s pressing, mounting and assembly works and relocating them to Tatarstan to enhance local production of McCormick tractors. These tractors are currently being produced in Tatarstan from assembly kits and it is planned that 200 of them will be manufactured there this year. 4000 tractors per annum are hoping to be made. The Minsk Tractor has a substantial number of midsize tractor sales in Russia and sells between 15000 – 17000 machines per year, the total Russian market is made up of 3,000 machines. MTZ also has a production line in Tatarstan where 2000-3000 tractors are produced every year.