CLAAS becomes a "Russian manufacturer" for combine harvesters

CLAAS, one of the leading manufacturers of agricultural machinery, has signed a special investment contract with the Russian Federation on the fringes of the St. Petersburg Economic Forum.

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The contract states that the company shall be awarded the official status of "Russian manufacturer", and will therefore be eligible for the same state subsidies for its combine harvesters as local producers. An initial letter of intent was previously signed last November during the Agritechnica in Hannover.

"The Russian agricultural sector has a truly promising future. This contract now makes state-of-the-art agricultural machinery affordable for Russian businesses", explains Lothar Kriszun, Spokesman of the CLAAS Executive Board. 

Demand for efficient harvesting technologies remains high. In Russia, only 72 million hectares of land are currently used for agriculture. This is although 122 million hectares in total would be suitable as farmland.

Further highlighting its commitment to the country, CLAAS opened an additional production line at its Krasnodar facility in October 2015, which cost roughly €120 million. The new production space is around nine times larger than the former factory, and now covers about 45,000 square metres. This means that production volumes will increase to as much as 2,500 combine harvesters and tractors per year. The technological exclusivity, with vertical penetration similar to the CLAAS home plant in Harsewinkel, will also allow companies outside the industry to be supplied. CLAAS started exporting second-hand machines through its first local dealers in 1992. This was followed by new machines and the first Russian employees, who were responsible for training and servicing. In 2005 CLAAS became the first foreign manufacturer of agricultural machinery to maintain its own production facilities in Russia; some €20 million were invested at the time.