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Here's the news from the LS tractor.

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(CLOB)


LS Mtron (president Jae-seol Shim) revealed on the 12th that it signed a contract to supply tractors on an OEM basis to CNH, the second largest maker of agricultural machinery in the world, starting in March 2011. By cementing such a strategic partnership, both parties have laid a cornerstone for creating synergies for global marketing efforts. With this contract, LS Mtron is expected to supply 20,000 tractors (US$200 Million) to CNH by 2013, which will be the largest supply of agricultural machinery exports in the history of Korean exports.

A line-up of 8 small tractor models ranging in horsepower from 28 to 47 will be supplied. They are all eco-friendly tractors satisfying Tier 3 emission regulations and will be sold throughout North America, the largest market for agricultural machinery in the world. The tractors feature a hydrostatic transmission (HST), which makes operation far more convenient than convention manual transmissions. They are also equipped with an easy-to-use joystick control, so virtually anyone can operate the machine. To date more than 20,000 units have already been sold throughout the North American market, proving their superior quality.

Since 2009 CNH has been supplying LS Mtron with large tractors which are not produced in Korea, and LS Mtron has been supplying CNH with tractors for the Australian and South-East Asian markets. The ‘strategic partnership’ forged recently will be the engine for creating synergies for global marketing efforts. For its part, LS Mtron plans to expand its sales in the global market by supplying small tractors to CNH.

The tractor market is basically divided into three segments according to engine horsepower, with 25~50 H.P. models constituting the small tractor segment, 50~100 H.P. models the medium tractor segment, and tractors having engines of 100 H.P. or more considered as large tractors. The small tractor market is currently led by Korean and Japanese corporations. Since the quantity to be supplied by LS Mtron to CNH is some portions of the quantity that has been supplied by Japanese corporations, it is expected that the models and quantities to be supplied will continue to increase in the future.

“With this contract, we will put more effort in attacking the global tractor market,” said Mr. Gwang-won Lee, Managing Director of the Tractor Dept. of LS Mtron. “LS Mtron will accomplish its tractor sales goal of KRW1 Trillion by increasing its global market share to reach 10% by 2015.”


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