Treviglio-  SAME DEUTZ-FAHR (SDF), a leading manufacturer of tractors, harvesters, engines and farm machinery, today announced the signing of a Joint Venture agreement with the Chinese company SHANDONG CHANGLIN AGRICULTURAL EQUIPMENT CO., LTD. (CHANGLIN), a group whose main activities include the production of construction machinery and agricultural tractors based in Linyi in the Shandong province.

The Joint Venture agreement will be held 50% by SDF and 50% by Changlin. The Joint Venture includes an initial capital investment of 20 million €, a first tranche of a total investment of 60 million €. The newly-formed company Shandong Changlin DEUTZ-FAHR Machinery CO., LTD will manufacture and distribute, in the Chinese market, tractors ranging from 25 to110 Hp under the SH DEUTZ-FAHR brand and from 110 to 300 Hp under the DEUTZ-FAHR brand.

The objective of the Joint Venture is to sell over 30,000 units on the Chinese market in 2015. All the tractors will be manufactured in a new factory that will be built on a site with a total area of 260,000 sqm, of which 60,000 will be under roof. The new plant is designed to have a capacity of 50,000 units per year. The Joint Venture will utilise the existing Changlin dealer network, consisting of 490 dealerships throughout the Chinese territories, to distribute all its products.

“This Joint Venture has a strategic value in the development and growth plans of our Group because it will allow us to effectively penetrate the important and competitive Chinese market. The agricultural sector in China is displaying strong growth, with a high demand for mechanisation based on innovative technologies that will make it possible to sustain the industrial development of the country’s agricultural sector. We are pleased that an important company such as Shandong Changlin Agricultural Equipment in China has chosen to work with us on the production of new medium and high end tractors. It is a recognition of the quality of our products, which enables the SAME DEUTZ-FAHR Group, thanks to its continuous investments in research and development, to meet the specific requirements of every market,” declared Lodovico Bussolati, CEO of SAME DEUTZ-FAHR.

“Through the cooperation with the Italian company SAME DEUTZ-FAHR, the joint venture will introduce the patented technologies of the 100-300 HP large tractors and the CVT transmission. The project will fill the gap for high-end tractor production in China, and will take our country a step closer to reaching the advanced international standards of high Hp tractor technology,” said Mr Zhong Mo CEO of Changlin Group and Chairman of the Joint Venture