25/10/05
The Italian industrial group SAME DEUTZ-FAHR, a world leader in
the farm tractor, diesel engine, and harvesting machinery manufacturing
sector, has reached a wide strategic agreement with Escorts Ltd
(New Delhi), one of the major Indian industrial groups, also active
in the farm tractor sector.
The agreement envisages collaboration in two distinct areas:
- The OEM Supply Contract, entered into by SDF Italia and Farmtrac
North America, LLC of Tarboro, NC, the American subsidiary of Escorts,
contemplates the supply of two-wheel and four-wheel drive tractors
in the 75-115 HP power category in both the CBU and SKD versions
to be produced and marketed under the Farmtrac colour and brand
name. This relationship will enable Farmtrac to complete its product
range for its network of more than 300 dealers by extending its
range up to 115 HP.
The five-year contract anticipates regular supplies for more than
USD 15 million a year.
- The SAME Distribution Contract for the North American market.
Further enlarging the scope of the co-operation between the two
companies, SDF Italia has appointed Farmtrac N.A. Inc. its sole
distributor for the SAME trademark for United States and Canada.
Collaboration between the two companies will see SAME brand re-launched
in North America thanks to the distribution network, optimised
operation facilities and financial instruments that Farmtrac
N.A. Inc. has in place in North America. The SAME brand marketing
activity will particularly target the specialised sector, i.e.
orchard, vineyard and crawler tractors. The business plan the
two companies share anticipates a regular turnover of more than
USD 10 million a year.
“This co-operation agreement with Escorts Ltd, one of India's
most highly qualified tractor manufacturers, underlines our growing
interest for internationalisation projects as a necessary tool
for the growth of our industrial group. This agreement can be considered
another important step of our strategy aimed at reinforcing our
role as a Global Competitor in tractors, agricultural machinery
and diesel engines ,” commented SAME DEUTZ-FAHR Chairman
Vittorio Carozza.
About ESCORTS Ltd
Escorts Limited, a USD 500 million conglomerate, is among India's
foremost professionally managed groups with business interests
in areas of agri-machinery, construction & material handling
equipment, automotive & railway ancillaries, information technology
and financial services.
Farmtrac North America, LLC is a Tarboro, NC based company which
was acquired by Escorts Limited through its US subsidiary Escorts
Agri Machinery Inc. Starting in 1999, Escorts has progressively
acquired the majority equity holding in the company and now owns
75% of the equity of the company. Farmtrac markets its products
in 32 states in US through a growing network of 300 dealers.
About SAME DEUTZ-FAHR:
SAME DEUTZ-FAHR is one of the leading manufacturers of tractors,
combines, agricultural machinery and diesel engine in the world.
It manufactures and sells its products under the brand names
of SAME, LAMBORGHINI, DEUTZ-FAHR and HÜRLIMANN. The tractors
range from 30 to 265 HP and include crawlers and specialised
models for vineyards and orchards.
The group's turnover for 2004 is USD 1.1 billion, with a
production of 32,000 tractors, 20,000 engines and 26.000 transmissions.
In 2003 SAME DEUTZ-FAHR acquired a 29.9% share of Deutz AG, the
leading independent international manufacturer of diesel and gas
engines, thereby becoming the principal shareholder. Deutz engines
find application in agricultural machinery, in compressors, in
commercial vehicles, in power stations and in several other applications.
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