MOSCOW, Russia- (May 27, 2010) – CNH Global NV and Russia's OJSC KAMAZ today announced that they have finalized their agreement for a commercial joint venture. This follows and completes the industrial partnership sealed last March, and forms a new alliance that has the resources, technology and distribution network required to support Russian customers more effectively with agricultural and construction machinery.
The commercial agreement was signed today in Moscow by Franco Fusignani, CNH International CEO, and Sergey Kogogin, General Director of OJSC KAMAZ.
The new company, CNH-KAMAZ Commercial BV, of which CNH will hold a 51 percent share and KAMAZ the remaining 49 percent, will distribute and service agricultural and construction equipment in the Russian Federation. CNH-KAMAZ Commercial will begin operations immediately.
A preliminary agreement on the partnership was signed last October 2009 by Sergio Marchionne, Chairman of CNH Global NV and Chief Executive Officer of Fiat S.p.A., and by Sergey Chemezov, General Director of Rostechnologii, in the presence of Vladimir Putin, Prime Minister of the Russian Federation. This was followed on March 22nd with the finalization of the related industrial joint venture to produce agricultural and construction equipment at the Naberezhnye Chelny plant, in the Republic of Tatarstan. Stretching over a total area of more than 50,000 square metres, the facility benefits from an initial investment of USD 70 Million to install an annual production capacity of 4,000 units, which will include tractors, combine harvesters and backhoe loaders.
Assembly of New Holland Agriculture new tractor models T8050, T9040, T9060, ranging from 325hp to 535hp, as well as the 272hp CSX7060 and 300hp CSX7080 combine harvesters has already started at the Naberezhnye Chelny factory.
Within the new commercial joint venture, CNH and KAMAZ have agreed to take advantage of their well established distribution networks in order to further strengthen their presence in the market.
CNH-KAMAZ Commercial, with its operations based in Moscow, will market and sell in the Russian market all New Holland locally produced and imported agricultural and construction equipment. CNH will provide the technology and know-how for commercial operations, including engineering support and counseling activities to ensure the venture meets CNH's global quality standards.
"This is a significant day not only for our companies but for the agricultural and construction equipment industry in Russia. The alliance with a partner as important as KAMAZ, a leading manufacturer in Russia, strengthens our strategy to establish a direct presence in a market that has enormous potential for growth." said Franco Fusignani, CNH International CEO. "The Russian market is a priority for us and this partnership brings us closer to our customers. This agreement gives us the opportunity to showcase our first-class technologies, broad product offering, innovative solutions and dedicated personnel, and to prove to Russian customers the value of our machinery. On this basis, we intend to expand the product portfolio of our CNH brands in Russia—followed by other CIS countries—with fuel-efficient, reliable and high-quality machinery, while improving the level of service, supporting a productive development of the agri-business and construction equipment sectors in the country."
"Our cooperation with CNH was supplemented with an important element: the new JV will promote the equipment produced in Naberezhnye Chelny, and provide customers with effective and comprehensive solutions. We are sure that our customers will appreciate services rendered by our JV at their true worth." said Sergey Kogogin, General Director of OJSC KAMAZ.
The alliance will allow the two firms to strengthen and synergize their resources in manufacturing and service to the benefit of the Russian agricultural and construction equipment sectors. In a first phase, the new venture will expand the New Holland branded product offerings that can count on a wide selection of low, medium and high-horsepower tractors, conventional and rotary combines, grape and forage harvesters, tillage and seeding complexes and a full spectrum of heavy construction and light industrial equipment for use in road building, quarrying, demolition, excavation, commercial building and maintenance operations