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Catherine and Helmut Claas-Muelhaeuser.
While the the world’s farm machinery industry is feeling it tough, sitting alongside an agricultural sector that appears to be in the doldrums, it’s encouraging to hear one big company is looking to the future.
German harvesting and tractor manufacturer Claas is betting large on Russia at a time when others are pulling back and out, as the country struggles with political unrest and record low oil prices.
The 3.8 billion euro company, already operating a factory in Krasnodar, will spend at least 120 million euros (NZ$ 200m) building a second plant, with the capacity to take production to 2500 units per annum. Scheduled to open in the last quarter of 2015, the combined site will be Claas’s fourth largest in size.
Catherin Claas-Muelhaeuser, who with her father Helmut (93), owns most of the Harsewinkel-located company, is backing the Russian expansion.
“Despite the current challenges in Russia, we are convinced about the future of Russia,” she says. “We believe there are great prospects for its agriculture, but it has a need for investment in farm technology.”
This comment makes sense considering Russia’s 122m ha of farmland, only 60% effectively farmed. It uses mostly outdated machinery dating back to the Soviet Union.
“The no. 1 priorities for our growth are Russia and Ukraine, in that order, and they’re the reason for our investment, despite the difficulties,” says Claas KgaA chief executive Lother Kriszun.
He says those who are courageous and stay for the long run will be viewed positively by potential Russian customers.
“We should also remember that Russia is not Putin. It is a large country on the European continent and we are sure the situation will normalise in due course.”
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