LS Mtron Head of Tractor Business Kang Seok-ho (right) and CEO Sun Gwang-ju of WOONGJIN Machinery (left), a Korean tractor implement maker, pose for a photo after signing the joint venture agreement to produce tractor implements at the LS Mtron Jeonju Plant.

■ Korea’s leading tractor maker and implement maker signed a joint venture agreement to produce tractor implements
■ Plans to establish an implement plant in Gimje Free Trade Zone with an annual production capacity of 20,000 units
■ LS Mtron Head of Tractor Business Kang Seok-ho, “We will advance to a total agricultural solution provider through cooperation with this implement maker.”

LS Mtron (CEO: Shin Chai-ho), a subsidiary of LS Group and a company which specializes in industrial machinery and high-tech parts manufacturing, announced on the 9th that it had signed a joint venture agreement with WOONGJIN Machinery (CEO: Sun Gwang-ju), a Korean manufacturer of agricultural machinery, to produce tractor implements at its Jeonju Plant.

The name of the joint venture to be established through this agreement is “LAND SOLUTIONS,” which implies that it will function as a total agricultural solution provider. LAND SOLUTIONS will embark on the process of concluding investment agreements with Jeollabuk-do Province and Gimje City as well as the Gimje Free Trade Zone Office of the Ministry of Trade, Industry and Energy. LAND SOLUTIONS will establish an implement manufacturing plant with an annual production capacity of 20,000 units on a site measuring approximately 51,000 m2 in Gimje Free Trade Zone. With production items including loaders and backhoes, the plant is scheduled to start mass production in the first quarter of 2023. LAND SOLUTIONS’ key products will not only be distributed in Korea, but also exported to North America, LS Mtron’s strategic market.

With this agreement, LS Mtron has secured an important foundation for the growth of its tractor business, as the company will be able to improve its implement supply capacity in addition to expanding its tractor sales. WOONGJIN Machinery will also achieve stable business growth and establish a supply system based on the expertise it has built in implement manufacturing and production technologies.

“Through this agreement, we secured a new strategic business model that will achieve joint growth for both the tractor maker and the implement maker,” said LS Mtron Head of Tractor Business Kang Seok-ho. He added, “LS Mtron will advance to a global total agricultural solution provider.”