MTZ to Supply $5.4 mln Worth of Tractor Kits

Khmer Times No Comments Share:

PHNOM PENH: March 12 2014 (Khmer Times) – Minsk Tractor Works (MTZ) has signed a contract to deliver knock-down tractor kits worth $5.4 million to Cambodia in 2014, the Belarusian Telegraph Agency (Belta) has reported.
The report said the construction of the company’s Belarus Mekong assembly plant  had been completed with the opening ceremony slated for March 26-28.
Belta said the plant would have the capacity to assemble 500 tractors a year in 2014 and 2015 with sales targeting Cambodia and neighboring countries.
The report said MTZ had an 80 percent share in the joint venture company that owns the plant while a Cambodian partner held the remaining 20 percent.
Founded in 1946, MTZ controls 8-10 percent of the global tractor market with plants in several countries including Russia, Azerbaijan, Ukraine, Kazakhstan, China, Romania, Egypt, Serbia, Algeria and Venezuela.
The report said two-way trade between Belarus and Cambodia came to $6.2 million in the 11 months to November with Belarusian exports making up $5.2 million.
Since 2012, many tractor manufacturers have headed for Cambodia, from Chinese to Korean for the lower end market and India for the mid priced market and John Deere, New Holland and Massey Fergusson for the higher end market along with Kubota of Japan.
They have all managed to find a market niche and share of their own but most suffer from after-sales service and adequate spare parts back-up as well as reliability issues.
The manufacturers have largely compromised reliability and quality for price and in the long run, many lower priced tractor suppliers would be forced to close down as buyers are becoming wiser.

Share and Like this post

Related Posts

Previous Article

CNRP Warns of More Protests – Garment Sector Disagrees

Next Article

Sam Rainsy Predicts Peaceful Change