AGCO Expands In Eastern Europe

Posted on May 26, 2006

AGCO Corp. has announced the creation of a new joint venture company in Russia, AGCO SM Group, a partnership between AGCO Corp. and the SM Group. AGCO SM Group will be responsible for the distribution of Fendt and Valtra branded equipment throughout Russia and Kazakhstan. AGCO will have a 51 percent ownership in the joint venture. AGCO currently sells its Challenger and Massey Ferguson brands in the region through different distribution.

AGCO SM Group will focus on distributing Fendt and Valtra tractors above 150 horsepower, Fendt combines, and various associated AGCO tillage and planting equipment to areas with the largest growth potential.

The SM Group's past experience in Russia includes ownership of the Yenisey combine factory in Krasnoyarsk and a partnership interest in Agromash Agricultural Machinery.