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26 December 2012, 0:00

Kirovsky Zavod and Same Deutz-Fahr will establish a joint venture

On December 20, 2012, KIrovsky Zavod JSC and Same Deutz-Fahr signed the agreement on establishment of a joint venture for the production of agricultural machinery.


The newly formed company called Same Deutz-Fahr Kirovets will specialize in the production of mainly agricultural tractors with capacity of 70-270hp and combines with capacity of 220-360hp. In particular the company will start production of tractors of the following models: Agrotrac 150, Agrotron 165.7, Agrotron L720, Agrotron X720, line of tractors with capacity of 70-120hp, and harvester combines of Deutz-Fahr models. The products of the joint venture will be marketed under the brand Deutz-Fahr Kirovets.


The production facilities and headquarters of the Russian-Italian company will locate in the territory of Kirovsky Zavod in Saint-Petersburg. Along provision of production and administrative spaces, the contribution of the Russian party will include financial investments, organizational, legal and practical support of the project at the local level. In addition, for sales of the equipment the company will use the wide dealer network of Kirovsky Zavod covering most Russian regions and some neighbouring countries. SDF on its part shall bring to the production of Deutz-Fahr Kirovets branded machines, its own know-how, technologies, equipment and investments. According to the agreement, Kirovsky Zavod and Same Deutz-Fahr will have equal shares in the authorized capital of the new company.


The goal of this large-scale project is to launch new highly competitive, both in terms of quality and price, agricultural equipment on the Russian market. The agreement on establishment of the joint venture was reached following the negotiations between the parties based on the experience of their previous cooperation. The agreement was signed by Georgiy Semenenko, Director General of Kirovsky Zavod JSC, and Lodovico Bussolati, CEO of Same Deutz-Fahr. According to the agreement, the parties should approve the business plan of activities of the new company by the end of February 2013. The whole process of establishment of the joint venture will be completed by the end of March 2013.

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