CNH and Russia's Kamaz agree joint venture

CNH and Russia's Kamaz Corporation have signed a joint venture agreement that will see the two companies set up manufacturing facilities in Naberezhnye Chelny in Tatarstan, Russia.

Under the deal, the joint venture will produce various CNH agricultural products and specific construction equipment from 2010. The facility will also serve as an assembly plant for other CNH products.

"This agreement is a strong sign of our long term commitment to Russia," said Sergio Marchionne, CEO of Fiat and chairman at CNH Global. "With this joint venture, CNH will bring technological know-how, an existing distribution network and access to retail finance and leasing."

Sergey Chemezov, general director of Rostechnologi, said of the agreement, "Kamaz develops partnerships with leading world manufacturers of automotive and agricultural machinery. This joint venture will allow us to use the most advanced manufacturing sciences and provide Russian buyers with cutting edge machines."

The agreement was signed in the presence of Russian Prime Minister Vladimir Putin and will be followed by more definitive documentation in the coming months.