Following a recent meeting between the Chairman of Italian firm Fiat Industrial, Sergio Marchionne, and Argentine president Cristina Fernandez de Kirchner, CNH announced that it plans to set up what it describes as a "local manufacturing site" in Argentina.
The plan is to produce both combines and tractors at the Argentinian site for the Latin American markets.
There will be an initial investment of more than US$100m according to CNH which will be used to establish new, localised product lines and expand the Fiat Industrial complex in Cordoba, Argentina.
The firm states that the new plant will encompass a total surface area of 78,000m² and will generate some 600 direct and 1,500 indirect jobs.
CNH says it plans to manufacture its combines at the site as well but other than stating that it will manufacture equipment for both brands at the location, there is no indication whether the combines will be New Holland or Case IH-based machines.
There are also plans for 'specialty tractors' which the firm says it does not currently build in Latin America. They will be equipped with FPT Industrial engines manufactured in the same area.
Fiat's Sergio Marchionne said at the meeting: "Argentina will become a manufacturing hub in Latin America for these equipment lines. This investment is key to our growth strategy in Latin America.
"It will provide more efficient access for Latin American customers to products that are currently imported and will also be positive for the Argentine economy."
Launch of the localised product lines is expected to begin as early as the fourth quarter of this year.