Steppe Agroholding to produce farm machinery - paper

MOSCOW. June 20 (Interfax) - Steppe Agroholding, the agribusiness division of Russian investment group Sistema PJSFC , plans to start importing and assembling farm machinery at plants in China and Russia under its own brand Sterus, business daily Vedomosti reported, citing company CEO Andrei Neduzhko.

Investment in the project could total 1 billion rubles, a source familiar with the company's plans said.

Steppe plans to distribute and assemble 80 hp to 440 hp tractors, 260 hp to 360 hp combines, seeders, self-propelled sprayers, telescopic loaders and other machinery.

Some of the machinery developed to Steppe's specifications will be built at the plants of partners in China, while other products will be made at the company's facilities in Russia, after which it will go into mass production in China and Russia, Neduzhko said.

Combines and tractors are the farm machinery that is most in short supply in Russia, the director of strategic development at the Institute for the Development of Entrepreneurship and the Economy, Artur Gafarov said. The deficit amounts to about 25% for combines and 17% for tractors, he said.

Furthermore, a fairly large percentage of farm machinery has already reached the end of its service life.