Five-year agreement between Carraro and Agco in China
The contract, worth a total of € 25 million, for the supply of transmission systems for the new range of Massey Ferguson tractors made in the Changzhou plant
Campodarsego (Padua), 22 February 2013 - Important new agreement for Carraro Drive Tech, a Carraro Group company leader in transmission systems for off-highway applications. The company in fact recently signed a five-year contract with Agco, one of the largest manufacturers in the world of agricultural machinery, for the supply of transmission systems for the new range of tractors which will be produced in the plant in Changzhou (China).
More in detail, this contract, worth 25 million Euros, covers the provision of various types of front axles integrated with a drop box, for Massey Ferguson BX200 series tractors with engines from 80 to 120 hp. Tractors designed for both the Chinese market and for export to the United States, the Far East and Africa.
These vehicle ranges represent only a first phase of the Agco expansion plan in China, which shortly envisages the startup of new tractor, baler and component production in the Changzhou, Yanzhou, Shanghai and Daqing plants. This due to expected growth in the market for mediumsized tractors, as well as to the incentive policies promoted by the Chinese government.
"Agco is one of the leading international players in agricultural machinery through Massey Ferguson, Valtra, Fendt & Challenger brands, and is now one of the most important customers of our Group at a global level. This further agreement confirms a solid partnership and renewed confidence in our ability to develop products which live up to expectations - said Enrico Carraro, Group Chairman - A contract of this kind, signed in China with a historic European player, shows how scenarios are changing in our target markets. And demonstrate above all how Carraro today is able to adequately respond to the specific needs of each geographical region, thanks to production designed and located where there is a market".
"China is no stranger to interesting periods of growth. Historically we have seen it in the construction industry, now stable - concluded Enrico Carraro - The current new scenarios also augur well for the agriculture sector, as a result of incentive policies promoted by the local government to support the primary needs of the population. Being there already, with adequate solutions in agricultural mechanisation, means being one step ahead and laying the foundations for the acquisition of ever increasing market shares".