Rostselmash, the largest agricultural machinery maker in Russia and the former Soviet Union, said on Wednesday that it would invest $2 million annually in its new asset, Canada’s Ezee-On.
“Tractors and seeding machinery are often supplied and used together, and this equipment will be designed to go together with our tractors, which is important because tractors are becoming increasingly digital,” said Konstantin Babkin, director of the board of the Novoye Sodruzhestvo holding owning Rostselmash.
Early this year, Canadian company Buhler Industries Inc. where Rostselmash holds the controlling stake bought Ezee-On Manufacturing from TerraVest Income for $14.5 million. Ezee-On assets include technical premises and storing facilities in Canada.
During a visit of delegates from the Canadian Embassy in Russia to Rostselmash plant in Rostov-on-Don in southern Russia, Babkin said the planned annual investment in Ezee-On would help increase production by 30%.
“Considering that global food production is rising, we hope that the Russian market would also grow and supplies here will increase,” he said.
Babkin said about 50% of machinery manufactured at Rostselmash’s plants in North America were sold in Canada and the United States, 20% exported to former Soviet republics and about 30% to other countries.
ROSTOV-ON-DON, May 18 (RIA Novosti)