LS Mtron supplies tractors of $ 100 million scale to Ukraine ...
'The largest' scale in Eastern Europe
■ LS Mtron, POSCO DAEWOO signed a contract of tractor supply with three companies and UkrAVTO
■ The first debut in Ukraine of domestic company ... Significance of advance into the world's three largest grain fields
■ Koo Ja Eun, a vice chairman, "Advance into Ukraine is another starting point of targetting emerging market..." "I will raise it one of global top 5 brands"
LS Mtron which is a professional corporation in industrial machinery and advanced parts signed a contract for tractor supply between POSCO DAEWOO - UkrAVTO - LS Mtron about $ 100 million scale so it established a bridgehead for local advance. Starting this contract, LS Mtron plans to spur on advance into Eastern Europe and CIS.
LS Mtron announced on the 29th that they signed a supply contract for agricultural machinery between POSCO DAEWOO - UkkrAVTO - LS Mtron at the headquarter of UkrAVTO, Ukraine on the 16th.
At the signing ceremony, main people (Koo Za Eun, as a vice chairman in LS Mtron, Lee Sang Hun as a managing director in POSCO DAEWOO, Tariel Vasadze as a honorary chairman in UkrAVTO) from three companies attended.
UkrAVTO is the largest automobile group in Ukraine with annual sales of $ 1.5 billion manufacturing and distributing global 14 automobile brands including GM, Benz, Kia, Toyota.
LS Mtron plans to supply seven kinds of 50~140 HP (horse power) tractors in the form of semi-finished products to UkrAVTO about $ 100 million (with a minimum purchase amount of 4,500 units) from 2018 to 2022 through this contract. POSCO DAEWOO is scheduled to do a role of partner for participation of local assembly business, agricultural lease business and so forth in the process of sales. UkrAVTO is planning to advance successfully into the local agricultural market after assembling the supplied semi-finished products by utilizing Ukraine ZAZ automobile factory which was taken over from past DAEWOO and Poland FSO factory.
LS Mtron explained that this contract is one of fruitions which POSCO DAEWOO and LS Mtron that concluded the business agreement of global B2G business cooperation in last August went into the local government of emerging nation. LS Mtron and POSCO DAEWOO have been laid the foundation stone to the Ministry of Agriculture and Forestry of Ukraine for market advance with explaining the plan on both companies for the development of local agriculture industry.
Kim Yeon Soo who is a CEO in LS Mtron said that this contract is the limited amount of Ukraine domestic demand and the size of supply will get bigger considering the volume to be sold at near area in the future. Also said we put our effort on the advance into Eastern Europe and CIS building on the advance into Ukraine.
KOO Ja Eun who is a vice chairman in LS Mtron said, "The advance into Ukraine will be another starting point for targeting emerging market to grow into global top brand." We will continue to make efforts to grow LS Mtron tractor into a global top 5 brand. "He added.
An official of POSCO DAEWOO said, “The grain business is being selected as the strategic business of the company and Ukraine is one of the strategic areas of the grain business.” Through this contract, we will supply the latest agricultural machinery to small and medium sized local farms and plans to make virtuous circulation connecting enhanced domestic output.” He said
Meanwhile, the tractor business of which profit was about KRW 160 billion in 2008 when LS Mtron was launched is continuing its upturn trend. Global sales of KRW 43 billion in 2008 grew rapidly reaching KRW 384 billion last year.