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Here's the news from the LS tractor.

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(CLOB)



■ LS Mtron aims at achieving 1 trillion won sales of tractor business and more than 300 billion won in the Chinese market in 2015
■ LS Mtron will safely land in the Chinese market by occupying the high-tech market with differentiated high quality and function products.

LS Mtron of LS Group, which is specialized in industrial machines and high-tech parts and whose representative is Sim Jae Seol, announced on 30 of the month that the company held a ceremony for commencement of construction work for a tractor pant in Qingdao, China, which the company invested in 30 billion won in order to strengthen global competitiveness and invade the Chinese tractor market that is a worth of around 20 trillion.

The ceremony was held in the land of LS Mtron’s tractor plant in Qingdao, China, with participation of about 200 people including the president of LS Mtron, Sim Jae Seol and officers in Qingdao, China.

LS Mtron carried out establishment of a tractor plant with 20,000 tractors of annual production in Qingdao, China, in order to prepare the foothold for a leap as an international leading tractor company since the Chinese tractor market has rapidly emerged as one of the largest markets in the world with 220,000 tractors of annual production. Currently, the Chinese tractor market of the agricultural machine industry has grown four times compared to 2004 due to agricultural supporting policy to resolve gap between city and farming villages, agricultural machine policy for food security, supporting policy for famers returning to farming because of economic crisis. However, local Chinese companies suffer from low quality products, and global companies from distribution network and A/S problems. Against the backdrop of this, in China, there are competitive wars without the sound of guns among the international tractor companies including John Deere, CNH and Kobota, which have full-fledgedly entered into the Chinese market recently.

While Japanese companies concentrate on producing tractors 35 and below horsepower and European companies 100 horsepower and above, LS Mtron mainly produces products with 51 horsepower ~ 100 horsepower (51%) of the Chinese market, which makes easy to access to the products and have proved for rice and field farming in the Korean market, meaning that it can also achieves differentiation of products. LS Mtron plans to conduct marketing by focusing on high-end market by positioning with high quality and function products. In addition, after targeting three castles in the north east of China, it will gradually extend to North China and Yangtze River area where account for 85% of the middle and large tractor market and to the whole area of China.

Sim Jae Seol, President of LS Mtron, said that through establishment of the tractor production base in Qingdao, China, the company will diversify production bases and prepare the foothold that enables global sourcing and marketing, and in 2015 it will achieve more than 3,000 in the Chinese market and one trillion of total tractor sales.


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