Dutch and Belgian firms build Russian networks
Published 22/02/2012 | 06:00
Dutch firms Trioliet and Miedema and Belgian company AVR are to embark on building a new factory in Russia in an effort to expand their agricultural machinery presence there.
The project will be in collaboration with Kolnag, their Russian agricultural machinery manufacturing partner.
Dutch firm Trioliet manufactures agricultural mixer/feeders for livestock, Miedema builds potato storage and handling equipment and AVR constructs potato planting and harvesting equipment.
All three firms have been working with Kolnag in Russia for more than a decade and the investment is being funded through a Dutch government-backed scheme for emerging markets.
According to the group, there is a growing demand for agricultural machinery in Russia as the country aims to become more self-sufficient and less reliant on imports for its food supply, and this investment will allow the group to increase production in order to meet that demand.
One of the reasons for the development of a factory in Russia is that there are high import duties into the country and producing equipment within its borders overcomes this problem.
Production within Russia would also open up other 'high potential' markets such as Kazakhstan.