Carraro, AGCO In China Deal
Carraro Drive Tech announced it has signed an agreement with AGCO for the supply of transmission systems for the new range of Massey Ferguson tractors made in AGCO's plant in Changzhou, China.
The five-year agreement is worth €25 million and covers the supply of various types of front axles with integrated dropbox for the Massey Ferguson BX200 series tractors rated 60 to 90 kW.
According to Carraro, the tractors are designed for the Chinese market, as well as for export to the U.S., Asia and Africa. The tractors also represent a first phase of AGCO’s planned expansion plan in China, which includes the startup of new tractor, baler and components production in the company’s Changzhou, Yanzhou, Shanghai and Daqing plants. The plan follows an expected growth in the market for medium-size tractors, as well as incentives by the Chinese government.