Koblik Group to acquire John Deere's Orenburg plant
ORENBURG. May 17 (Interfax) - Koblik Group plans to acquire the Orenburg plant of U.S. machinery manufacturer John Deere, which halted operations in Russia due to sanctions, the regional government's press service reported on Tuesday.
The owner of Moscow-based Koblik Group, Yegor Koblik discussed his company's activities at this plant with Orenburg Governor Denis Pasler, the press service said.
It also said that Koblik Group already expects to restart production at the plant this year. The company also has plans to expand the line of products. Initially, it plans to move production of drawn machinery to the plant and in future it intends to launch production of grain handlers and conveyor dryers.
"The manufacturing facility in Orenburg will open up prospects for the company to expand its business. It has advantages, both in terms of logistics and the resource base. There are plans to invest hundreds of millions of rubles in production and create more than 200 jobs," Pasler was quoted as saying in the press release.
Koblik Group manufactures equipment for post-harvest processing, such as grain cleaning, drying and storage, the company's website said.
The company has four plants in Voronezh, Smolensk and Minsk, the Orenburg regional government said.
Koblik directly owns Koblik Group LLC, as well as controlling stakes in a number of other companies, including Voronezhselmash LLC, Zaraiskaya Kuznitsa LLC, Koblik Metall LLC (Nizhny Novgorod Region), Romaks LLC and Selmashservis LLC (both in Voronezh).
Deere & Co. , one of the world's largest farm machinery makers, moved its assembly plant for combines, tractors and construction equipment from Domodedovo to Orenburg in 2019, investing 1.2 billion rubles in the preparation of the new plant.