CNH Joint Venture to Start Manufacturing in Russia

March 25, 2010
Partnership with Kamaz will produce combines, tractors, and construction equipment

CNH Global N.V. has completed a joint-venture agreement with Russian heavy truck manufacturer OJSC Kamaz. Together, they will produce agricultural and construction equipment in Russia through a company known as CNH-Kamaz Industrial B.V.

Each partner will hold a 50% share of CNH-Kamaz Industrial B.V. A related commercial joint venture will be established to handle marketing and distribution of the CNH-Kamaz products.

CNH Global manufactures the Case and New Holland brands of agricultural and construction equipment. It is a majority-owned subsidiary of Fiat S.p.A.

CNH will make available New Holland agriculture and construction models, components, and technologies, and will integrate the new venture into its global manufacturing network.

"With this JV we aim to significantly increase our operations in Russia,” stated CNH International CEO Franco Fusignani. “We expect this alliance to foster improved local economic activity, through CNH's advanced technology, and increased productivity in one of the world's most important markets."

OJSC Kamaz is Russia’s largest manufacturer of heavy-duty trucks. It also produces diesel engines. Its headquarters city of Naberzhnye Chelny, 1,000 km east of Moscow in Tatarstan, is the site of the +50,000-m2 plant where CNH-Kamaz Industrial will manufacture 300-hp combines, 300-hp and 535-hp tractors, and construction machinery. Production will begin in the fourth quarter of this year.

The initial investment in the plant will be $70 million, and its products will be destined for the Russian market. Later, other former Soviet republics will be targeted.

New Holland Agriculture machines, including components and implements, will be in production at OJSC Kamaz as early as April. During the fourth quarter of this year, New Holland Construction backhoe loaders will be in production there.

Sergey Kogogin, General Director of OJSC KAMAZ, stated: "The Russian users of agricultural and construction equipment will soon be able to purchase CNH's high-quality and high-tech equipment produced at our JV in Russia."

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