Concern Tractor Plants conducts negotiations with AGCO

Alongside “Concern Tractor Plants” (CTP – Koncern Traktornye zavody), the Machinery & Industrial Group, one of Russia’s largest industrial and machine manufacturing groups, possesses 17 further plants at sites in Russia, Denmark, Germany, Austria, the Netherlands, Serbia and Ukraine. The enterprise, operating under the Dutch name M&IG N.V., is a holding company which until recently owned 100 % of the shares of all the companies. The owners are Albert Bakov who holds 20 % of the shares and Mikhail Bolotin, who holds the rest.

In addition to tractors and agricultural and forestry machinery and equipment, the group produces installations and machinery for the oil and gas industry, the power industry , the steel industry, building construction and civil engineering, and special vehicles for municipal applications. The holding company includes four distribution and services enterprises, one of which is the firm Agromash Holding.

The enterprise was set up in 1996 by Mikhail Bolotin on the basis of the Cheboksary Industry Traktor Plant. Today, as President and Managing Director, he heads a workforce of 25,000.

Before the takeover by Bolotin, the company supplied the countries of the Warsaw Pact area, but has meanwhile withdrawn from these markets so that today the home market forms the focal area of corporate activities. Revenues have shrunk, as now only the domestic market with a population of 120 million is to be serviced. The priority target is and remains retaining the leading position in Russia.

The group strategy is to take over high-tech companies specializing in fields in which the group sees a need to catch up, but not in order to transfer these enterprises to Russia. Instead the aim is to expand their production capacities and palettes so that they can service markets in both the East and the West. However, in order to attain a presence in European countries the smaller manufacturers were to be taken over.

To boost the efficiency of his enterprise, Bolotin is planning to conduct technical modernization programmes with concrete measures. The volume earmarked for investment totals another 600 million US Dollar, intended to increase revenues to 5 billion US Dollar.

The Managing Director of CTP believes that no country will dispense with manufacturing agricultural machinery and equipment itself, but instead will make every effort to maintain and promote this industry in order to ensure independence in food supplies as far as possible. Land areas cannot be increased, but food consumption will continue to grow. Russia is the country with many free, attractive and as yet untilled areas. Appropriate machinery and equipment will be needed to cultivate these fields. Bolotin stressed that the Russian market has space for all manufacturers, and furthermore is not homogenous. There is plenty of demand for both high-tech and low cost machinery, partly from China too.

Vogel & Noot, Luitpoldhütte and Silvatec belong to the company portfolio. Negotiations on a joint venture are underway with AGCO. CTP already operates a joint enterprise with AGCO that produces SISU engines. Other joint projects are under discussion. The Russian enterprise would like to service three areas of competence itself – building of engines, gearboxes/transmissions and key components. The rest can be supplied from everywhere else. For CTP it is interesting to solve the market problems on a grand scale with AGCO. This is not a matter of a few selected models, but instead of all the machines for which there is demand in Russia. The company aims to provide a full-line arable farming  programme from drilling to harvesting, including tractors, for both Russian and international customers.

Source: Eilbote, No. 15 2011

KUHN announces the completion of the acquisition of KRAUSE

KUHN Group announces the completion of the acquisition of KRAUSE Corporation, a privately held North American leader in the field of tillage equipment and grain drills, located in Hutchinson, Kansas, USA.

The company KRAUSE was founded in 1916. The generate turnover of KRAUSE amounted  last year 61 Mio. USD, the number of employees came to 230 employees.

KUHN Group, headquartered in Saverne, France, employs in excess of 3,500 people worldwide, and operates eight manufacturing companies located in the United States, France, Brazil, and the Netherlands. KUHN Group is represented worldwide through a large network of independent dealers served by a number of international marketing and distribution subsidiaries and independent distributors. In 2010, KUHN Group’s revenues exceeded 617 million Euros (US $850 million).

KUHN North America, Inc. mit Sitz in Brodhead, Wisconsin, beschäftigt ca. 500 Mitarbeiter und produziert und vertreibt KUHN-Maschinen.

The new Company will continue to be lead by the prior KRAUSE Corporation management team and all KRAUSE employees, instrumental in the Company’s past successful performance, have been retained, with operations continuing in Hutchinson, KS. Mr. Thierry Krier, the President and CEO of KUHN NORTH AMERICA, INC., will serve as CEO of this new KUHN Company, while Mr. Keith Whitaker will serve as President.

Source:  Company-owned website