CNH and Kamaz cement JV

23 March 2010

CNH CEO Franco Fusignani shakes hands on the JV agreement with Kamaz general director Sergey Kogogin

Following last October's preliminary undertaking to form a joint venture company in the Russian Federation, CNH and Kamaz executives have now finalised an agreement to form CNH-Kamaz Industrial BV.

The new jointly owned company will manufacture construction and agricultural equipment in Naberezhnye Chelny in the Republic of Tatarstan, Russia.

At an official signing ceremony in Lugano, Switzerland, CEO of CNH International Franco Fusignani and senior vice president of business development Alessandro Nasi signed the accord with Kamaz general director, Sergey Kogogin and general director of CNH-Kamaz Industry LLC, Timur Nuriakhmetov.

The new company, CNH-Kamaz Industrial BV, will operate from a 50000 m² production facility and will initially supply the Russian domestic market before expanding to serve countries in the Confederation of Independent States (CIS).

Initial investment of US$ 70 million will be used to install production facilities capable of manufacturing 4000 units per year, including New Holland backhoe loaders and agricultural equipment.

Mr Fusignani said, "With this JV we aim to significantly increase our operations in Russia. We expect this alliance to foster improved local economic activity, through CNH's advanced technology, and increased productivity in one of the world's most important markets."

Mr Kogogin added, "We have started realising our common plans. The Russian users of construction and agricultural equipment will soon be able to purchase CNH's high quality and high-tech equipment produced in Russia."

The new manufacturing facility is expected to be operational in the fourth quarter of this year, although assembly of the first units will commence this April.

According to the terms of the agreement, CNH will make available certain New Holland models and technologies and will integrate the Naberezhnye Chelny facility into its global manufacturing network. A related commercial JV between CNH and Kamaz relating to marketing and distribution will be agreed in the coming months.