"Rostselmash" will increase the production of tractors six times

Published: February 10th, 2017

Rostov harvester construction plant LLC "HP "Rostselmash" (which is included into the holding "New Commonwealth) will increase the production of heavy tractors of the brand “Versatile” six times in 2017. It is expected that the new tractor workshop, assembly production, which was moved to Rostov from Canadian Winnipeg last year, will produce no less than 600 tractors this year. Localization of production in Rostov has already reached 60-70%

The head of the department of tractors Alexey Belkov reported to the "Expert SOUTH", that the workshop SKD was put in in July of 2016 and produced a trial batch of 50 ex-canadian machines that were run on our fields first. By the end of the year about a hundred tractors were made. Today, the degree of localization at the plant has increased up to 60-70% (paint, welding, cutting, fabrication frames, etc). In recognition of Mr.Belkov, the tractor engines will be shipped from the USA, and the transmissions from Japan. Also, these machines are quite economical in fuel consumption compared with their domestic competitors.

This year the company is planning to produce about 600 tractors (450 of them are “Versatile 2375”) in Rostov. We are talking mainly about the "2000 series" (tractors with a capacity of 335 and 375 horsepower), which are the most popular heavy tractors with the southern agrarians.

The decision to transfer part of the production of Versatile in Rostov was accepted by the administration of the New Commonwealth last year. The reason for this, as the owner told, was the changed conjuncture of the Russian market of agricultural equipment and a high rate of a dollar, because of which tractor production overseas was more profitable for the "New Commonwealth" previously.

Last spring during a meeting of the Board of Directors of the enterprises of Rostov-on-don, the Director General of HP "Rostselmash" Valery Maltsev spoke about the intention on expanding the localization of production of tractors to 67-70% next year.

It's interesting, that the co-owner of the "New Commonwealth" Konstantin Babkin spoke that during the developing economic crisis and insufficient, in his opinion, state's support of agricultural machinery doing business in Canada was even more advantageous than in Rostov.

"This conclusion is confirmed by the dynamics of turnover in four years: in Canada increased 1.7 times (from 219 million USD in 2008 to 361 million USD in 2012), in Russia, an increase of 5% (from 512 million U.S. dollars in 2008 to 539 million USD in 2012)," he said , explaining to the Russian President Vladimir Putin his unwillingness to transfer the assembly production to Russia.

Today, thanks to the economic sanctions and leap exchange rates, the production of tractors in Rostov becomes more attractive. Moreover, in a recent visit of the Minister of industry and trade Denis Manturov to "Rostselmash", the engineers were promised the substantial support in the form of subsidized interest rates on loans and subsidies to farmers for the purchase of new equipment (20 per cent of its value).

Source: expertsouth.ru

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