SEOUL, KOREA - LS Mtron, an LS Group company specializing in machinery and components, signed a US$350-million deal to supply tractors to CNH Industrial N.V. on an OEM basis.

 

 

The company said on January 20 that it would supply 34,000 tractors to the world's second largest farm equipment company for the North American and European markets for the next five years. With the annual sales revenue of $35 billion, CNH Industrial is a giant in agricultural equipment and construction equipment, with 64 manufacturing plants and 49 R&D centers worldwide.

 

The latest deal is an extension of the supply agreement LS Mtron signed with CNH Industrial in 2010. The earlier contract was for delivering tractors worth $150 million to markets including North America, Europe, Southeast Asia, and Australia. The tractor models that LS Mtron will supply this time are 11 types ranging from 25 to 47 hp.

 

Lee Gwang-won, LS Mtron's vice president in charge of machinery business, said, "We won supply deals worth $1 billion in one month including the $500-million tractor contract to Uzbekistan in December last year. Following the 552-billion-won sales revenue in tractor business last year, we will be able to reach the 1-trillion-won level this year."