Kamaz withdraws from farm machinery JV with CNH
MOSCOW. Oct 31 (Interfax) - The board of directors of Kamaz have approved withdrawal from a joint venture with CNH Global NV to produce farm machinery, the Russian company said in a statement.
Under their agreement, Kamaz will ultimately sell its stake in the JV to CNH Global. Kamaz initiated the deal under its strategy to divest non-core assets, the statement says.
The Federal Anti-Monopoly Service (FAS) has cleared CNH to acquire 100% of the joint venture: CNH-Kamaz Industries LLC.
Kamaz and CNH agreed the project in 2009 and organized the joint venture in January 2010. It began producing farm machinery in May 2010, including combines from February 2012. The JV plans to produce 700 units of machinery this year. Localization of components is slated to reach 40%-45% by 2017.
Capacity is targeted to reach 4,000 units a year. Investment will total $70 million.
CNH makes farm equipment under the Case IH and New Holland brands. It has a network of 11,400 dealers in over 160 countries.
