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Here's the news from the LS tractor.

News

(CLOB)


 - Exports of tractors reached $100 million a year thanks to aggressive invasion of the global market.
 - Innovative design and quality similar to those of automobiles are well received in the global market.
 - LS Mtron will sell tractors amounting to KRW1 trillion in 2015, and become a global player.

LS Mtron (CEO J. S. Shim), a subsidiary of LS Group specializing in industrial machines and state-of-the-art components, announced on February 29 that it exported tractors worth $100 million a year, and took the first step in exploring the global tractor market.

Previously the tractor market used to be a typical domestic consumption-oriented industry. The market size was 15,000 tractors worth KRW500 billion. Turning the global market, however, the market size grows to 1.3 tractors worth about KRW50 trillion, big enough to become a new growth engine.

Getting off to a new start in July 2008, LS Mtron went beyond the domestic territory to actively explore the global tractor market. As a result, the company entered into a contract in 2010 with CNH, the world’s largest agricultural machinery company for supply of tractors worth $200 million by 2013, and grew rapidly by making efforts to make inroads into European markets including Turkey and France, Germany and Poland. Consequently, the tractor sales reached KRW159.3 billion in 2008, KRW175.9 billion in 2009, and KRW264.1 billion in 2010, up by a whopping 51% over the previous year. This year the tractors sales are expected to exceed KRW300 billion with ease. The size of the tractor business became about twice as big in just three years. As for the sales composition, exports accounted for 27% in 2008, but the figure rose to 37% in 2010, and to 44% this year. LS Mtron exported tractors worth $100 million, heralding the start of full-fledged exploration of overseas markets. LS Mtron is exporting tractors to 24 countries in Africa as well as North America, Europe and Southeast Asia, and aims to increase exports to $200 million in 2013.

LS Mtron tractors are favorably received in overseas markets because of product innovation. By making tractors look as flashy as automobiles, the company won the Good Design Award, giving the industry a refreshing jolt. It also launched an epoch-making product that makes it possible to operate the gear automatically while maintaining the mechanical transmission. LS Mtron has brought products based on its 30-year tractor technology to the global market. Also, it conducted differentiated marketing like supplying customized products to different countries. For instances, some tractors come with such convenience items as an air-conditioner and a refrigerator.

Based on these products, LS Mtron was sensitive enough to capture the competitive environment and opportunities of the global market. So far major US and European makers have produced mid-to large-size tractors, and Japanese companies has focused on small and medium tractors. Armed with a lineup covering small and medium products with 23~100 horsepower, LS Mtron aggressively penetrated the market, which has been occupied by Japanese tractor makers suffering from a strong yen, and produced great results. Also, the company secured influential local sales channels all over the world, and conducted co-marketing, thereby expanding the market rapidly.

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