SEOUL, KOREA - LS Mtron, an LS Group company manufacturing industrial electric and electronic materials, said on December 17 that it signed a contract with an Uzbek company to supply tractors worth US$500 million.
Under the terms of the agreement, the Korean company will deliver 24,570 farm machines in six varieties for the next five years until 2018.
LS Mtron's tractor business has grown rapidly since its beginning in 2008. Its sales revenue has increased to 565.0 billion won this year from 159.3 billion won five years ago. Of this, overseas sales have risen nine times to 378.0 billion won this year from 42.9 billion won in 2008. The company, already No. 1 in the domestic tractor market, is selling its farm equipment in 40 countries worldwide.
The Uzbek government has long looked for tractor suppliers with advanced technological skills as part of an effort to improve the nation's agricultural competitiveness. The latest contract included provisions on technology localization and development of tractors specialized for cotton farms.
The company will in the future expand toward developing country markets including the Middle East, Africa, and Latin America. Lee Gwang-won, LS Mtron vice president, said, "The deal we signed recently is the beginning of our effort to move toward Central Asia. We will grow the tractor business as one of the top-five suppliers in the world by 2020."
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