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. Last Updated: 07/27/2016

KamAZ, CNH Agree On Venture

Truck maker KamAZ on Thursday signed an agreement with agriculture vehicle maker Case New Holland to create a joint venture to produce agricultural and construction equipment.

The agreement was signed by Russian Technologies head Sergei Chemezov and Fiat Group head Sergio Marchione in the presence of Prime Minister Vladimir Putin.

Russian Technologies owns 37.8 percent of KamAZ, and Fiat owns Case New Holland.

According to the agreement, the companies will form a 50-50 joint venture and will produce tractors, harvesters and loaders under the Case New Holland brand.

The initial production area will occupy 30,000 square meters and will be expanded to 70,000 square meters in the future.

The assembly lines, to be set up in KamAZ production areas, will be launched at the beginning of 2010, and the enterprise plans to produce up to 1,000 units a year.

The enterprise will do semi-knocked down assembly at the first stage, but will localize the production by 18 percent to 35 percent in the future.

Putin praised the Italian partner, calling it “one of the world’s acknowledged leaders,” and stressed that both parties should fulfill their promises on production localization, adding that the state will support the project.