9 Jun 2022 12:45

Rostselmash reviewing production plans, might cut output by 30%

ST. PETERSBURG. June 9 (Interfax) - Rostselmash , a major Russian farm machinery manufacturer, might revise its production program, the company's co-owner and president of Novoye Sodruzhestvo Industrial Union Konstantin Babkin said.

"Problems have now arisen with components, instability on the market. On the other hand, the market has been vacated, there's a good price for agricultural products, farmers have something to invest. Right now we're conflicted, we'll either produce 30% less than last year or about the same. All this depends on how transparent borders will be, how confident farmers feel, how they will be affected by the ban on grain exports. They're nervous about this," Babkin said.

He also said that the CIS and Africa are currently promising export markets for Rostselmash machinery.

"This year we delivered a batch of 30 combines to Egypt, which for Egypt is substantial and for us is a significant shipment. Before this we shipped single pieces of machinery, now a substantial batch. And there are plans for the purchase of an even larger batch," Babkin said.

"The CIS has remained the priority market for us. Europe [means] problems with payments. Problems are particularly being superimposed on the European market. People are prepared to work with us, but the political level makes this very difficult. I won't venture to say how this will turn out [but] we're prepared to supply," Babkin said.

Rostselmash increased shipments of combines and tractors by, respectively, 19% and 24% in 2021 to 6,525 and 1,634. Exports grew by 13.8% to 9.9 billion rubles.