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AGCO and Russian Machines Create Joint Venture

  AGCO and Russian Machines Create Joint Venture

Business Wire

MOSCOW -- September 17, 2013

AGCO, Your Agriculture Company (NYSE: AGCO), a worldwide manufacturer and
distributor of agricultural equipment, and Russian Machines, part of the Basic
Element group and one of the leaders in the Russian machinery sector, today
announced the creation of a new joint venture in order to manufacture and
distribute agricultural equipment and replacement parts in Russia. AGCO and
Russian Machines plan to make a total investment of approximately US$ 100
million in the joint venture over the next three years.

The joint venture is expected to begin operations in early 2014, with AGCO and
Russian Machines each having an equal ownership. The manufacturing facility
will be located in Golitsyno, near Moscow, with a total area of nearly 12.5
hectares including 27,000 square meters of production facilities. The site
will include a product show room, a training center and will feature state of
the art manufacturing processes. The training center will offer courses
designed to educate customers and dealers on the latest agri machinery
technologies. Additional plans include the creation of a Model Farm, based on
the agricultural business of Basic Element, to develop and disseminate modern
full-cycle agricultural solutions that help to improve efficiency of Russian
farmers.

The joint venture plans to offer comprehensive agricultural solutions for
medium and large scale farmers, including support services such as financing
and insurance, leveraging Russian Machines’ supply chain strengths and
providing AGCO with a strong local partner. AGCO will introduce more of its
high-tech products into the Russian market, while Russian Machines will
provide the necessary production capabilities and support with local business
development expertise.

"This joint venture is a very significant step in AGCO’s growth strategy for
the Russian market,” said Martin Richenhagen, AGCO Chairman, President and
Chief Executive Officer. “The agricultural sector in Russia has significant
potential but needs modernization and efficiency gains. The joint venture
between AGCO and Russian Machines is to join forces in bringing local farmers
a wide range of professional farming equipment, technologies, services and
solutions.”

Siegfried Wolf, Chairman of Russian Machines commented, “We believe that the
combination of AGCO's technology driven products with Russian Machine’s local
production capabilities will lead to a highly successful business operation
that will enhance the shareholder value of both companies."

ABOUT AGCO

AGCO, Your Agriculture Company, (NYSE: AGCO), is a global leader focused on
the design, manufacture and distribution of agricultural machinery. AGCO
supports more productive farming through a full line of tractors, combines,
hay tools, sprayers, forage equipment, tillage, implements, grain storage and
protein production systems, as well as related replacement parts. AGCO
products are sold through five core machinery brands, Challenger®, Fendt®,
GSI®, Massey Ferguson® and Valtra® and are distributed globally through 3,150
independent dealers and distributors in more than 140 countries worldwide.
Founded in 1990, AGCO is headquartered in Duluth, GA, USA. In 2012, AGCO had
net sales of $10 billion.www.AGCOcorp.com

ABOUT RUSSIAN MACHINES

Russian Machines – a major Russian diversified corporation which is part of
Basic Element Group. Russian Machines comprises industrial and engineering
assets in such segments as automotive OEM, automotive components, rail
industry, aircraft OEM, road construction machinery and military vehicles. The
corporation includes 24 enterprises located in 12 regions throughout Russia
and employs over 68000 people. The official corporate internet site is
www.rm.ru.

Safe Harbor Statement

Statements which are not historical facts, including expectations regarding
the development, productions and sales of products in this region, are
forward-looking and subject to risks that could cause actual results to differ
materially from those suggested by the statements. These risks include
possible declines in demand for products as a result of weather, demand and
other conditions that impact farm income, actions by producers of competitive
products, and the general risks attendant to acquisitions. Further information
concerning these and other factors is included in AGCO’s filings with the
Securities and Exchange Commission, including its Form 10-K for the year ended
December 31, 2012. AGCO disclaims any obligation to update any forward-looking
statements except as required by law.

Contact:

For AGCO
Rebecca Fabian, +1.646.415.8518
rf@stockheim-media.com
 
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