Koblik Group starts farm machinery production at former John Deere plant - authorities

ORENBURG. Oct 9 (Interfax) - Koblik Group is investing 1.5 billion rubles in the former John Deere plant in Orenburg, which was shut down due to sanctions, Orenburg Region's economic development, investment, tourism and foreign relations minister, Ignat Petukhov said on Telegram.

"New production processes have been established in less than three months. People have begun working and we already have the first units of finished product," Petukhov said. He posted a video of the first grain dryer built at the plant.

The plant currently employs 30 people, but as the Moscow-based company expands the plant's capacity there are plans to create 200 jobs, Petukhov said. The plant is also expected to generate 160 million rubles of tax revenue per year, he said.

Koblik Group, which announced plans to buy the Orenburg plant in the spring of 2023, planned to restart production there last year. It initially planned to move production of trailer machinery to Orenburg and subsequently manufacture grain loaders and conveyor dryers there.

Koblik Group makes equipment for post-harvest grain processing, including cleaning, drying and storage, the Russian company's website said. The group is owned by Yegor Koblik, who also controls a number of other companies, including Voronezhselmash LLC, Zaraiskaya Kuznitsa LLC and Koblik-Metall LLC in Nizhny Novgorod, and Romaks LLC and Selmashservis LLC in Voronezh, the Unified State Register of Legal Entities showed.

U.S. farm machinery giant Deere & Co moved assembly of combines, tractors and construction equipment from Domodedovo, Moscow Region to the Orenburg plant in 2019. It invested 1.2 billion rubles in setting up the new production facility.