Same Deutz-Fahr has signed a 50:50 joint venture agreement with the Chinese company Shandong Changlin Agricultural Equipment Co Ltd to build tractors for the Chinese market.
The newly-formed company Shandong Changlin Deutz-Fahr Machinery Co Ltd will manufacture and distribute tractors from 25-110hp under the SH Deutz-Fahr brand and from 110-300hp under the Deutz-Fahr brand atLinyi in the Shandong province.
The joint venture expects to sell more than 30,000 units on the Chinese market in 2015. All the tractors will be manufactured in a new factory that will be built on a site with a total area of 260,000 square metres, of which 60,000 square metres will be covered. The new plant is designed to have a capacity of 50,000 units per year.
The joint venture will sell through the existing Changlin network of 490 dealerships throughout China to distribute its products.
“This Joint Venture has a strategic value in the development and growth plans of our group because it will allow us to effectively penetrate the important and competitive Chinese market,” Same Deutz-Fahr cheif executiveLodovico Bussolati said. “The agricultural sector in China is displaying strong growth, with a high demand for mechanisation based on innovative technologies that will make it possible to sustain the industrial development of the country’s agricultural sector.
“We are pleased that an important company such as Shandong Changlin Agricultural Equipment in China has chosen to work with us on the production of new medium and high end tractors.”
The newly-formed company Shandong Changlin Deutz-Fahr Machinery Co Ltd will manufacture and distribute tractors from 25-110hp under the SH Deutz-Fahr brand and from 110-300hp under the Deutz-Fahr brand atLinyi in the Shandong province.
The joint venture expects to sell more than 30,000 units on the Chinese market in 2015. All the tractors will be manufactured in a new factory that will be built on a site with a total area of 260,000 square metres, of which 60,000 square metres will be covered. The new plant is designed to have a capacity of 50,000 units per year.
The joint venture will sell through the existing Changlin network of 490 dealerships throughout China to distribute its products.
“This Joint Venture has a strategic value in the development and growth plans of our group because it will allow us to effectively penetrate the important and competitive Chinese market,” Same Deutz-Fahr cheif executiveLodovico Bussolati said. “The agricultural sector in China is displaying strong growth, with a high demand for mechanisation based on innovative technologies that will make it possible to sustain the industrial development of the country’s agricultural sector.
“We are pleased that an important company such as Shandong Changlin Agricultural Equipment in China has chosen to work with us on the production of new medium and high end tractors.”
For more information visit: www.changlingroup.com.