CNH, Kamaz finalize industrial joint venture in Russia

  • 20-Apr-2010 03:05 EDT

CNH Global NV and OJSC Kamaz recently finalized their agreement to jointly manufacture agricultural and construction equipment in the Russian Federation, following the preliminary agreement signed in October 2009. The new company, CNH-Kamaz Industrial BV, will be a 50-50 joint venture between the two companies. Manufacturing operations will be based in Naberezhnye Chelny, where Kamaz has its headquarters. The production site will cover more than 50,000 m² (538,200 ft²) and produce machinery to initially supply the Russian domestic market, followed by other CIS countries. The initial planned investments of USD 70 million will serve to install an annual production capacity of 4000 units, including a 300-hp (224-kW) combine family, two ranges of tractors in the 300- to 535-hp (399-kW) segment, and construction machinery. CNH will make available certain New Holland models and technologies, and it will integrate the Naberezhnye Chelny plant into its global manufacturing network. Production will begin immediately for the agricultural equipment models and by the end of the year for the New Holland Construction backhoe loaders. The new plant is scheduled to be operative in the fourth quarter, but the first units will start to be assembled in April.

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