Rostselmash to invest over ₽6bn into a Rostov-on-Don tractor factory
The Rostselmash Group will spend over ₽6 billion for construction of a tractor factory in Rostov-on-Don. An agreement for cooperation on this project was signed today, July the 6th, at the INNOPROM-2021 International Industrial Exhibition between Rostov Governor Vasiliy Golubev and Rostselmash CEO Valeriy Maltsev.
The signing ceremony took place at the Russia’s Industrial Development Fund stand in the presence of RF Minister of Industry and Trade Denis Manturov and New Commonwealth Holding President Konstantin Babkin.
Rostselmash expects to start the construction of the factory in July 2021 and have it running at full capacity as early as 2023.
“Today’s signing of the partnership agreement between Rostselmash and Rostov Oblast is very important for all the stakeholders. The new tractor factory being built by Rostselmash will significantly increase the production of Russian tractors by 2025. The future factory is designed to roll out up to 3,000 machines per year, which is double the tractor manufacturing capacity Rostselmash is having today,” says Rostselmash CEO Valeriy Maltsev
“We are launching jointly with Rostselmash an ambitious project. Actually, there will appear a new factory in Rostov-on-Don, this will be a large production facility. We’ve agreed on comprehensive support for this landmark project. We’ll consider amending the local legislation in order to support this and similar projects with tax incentives,” commented on the signed agreement Rostov Governor Vasiliy Golubev.
“The new Rostselmash’s factory will be the first tractor factory built in post-Soviet Russia,” notes Rostov Oblast Investment Development Agency CEO Igor Burakov. “Tractor manufacturing is a key area in Rostselmash investment strategy which the company is pursuing to expand its operations, to diversify and broaden its product portfolio,” he adds.
According to Rostselmash, the Rostov-on-Don tractor factory will be producing a complete range of tractors from 170hp to 600+ hp. The new facility will be sited on 14 hectares close to the main Rostselmash’s site. The factory will be provided with equipment for welding, machining, painting and assembly of tractors. With the new Rostselmash’s facility, around one thousand of new jobs will be created.
The tractor factory project and other investment projects and programs Rostselmash has for 2021 to 2024 are presented at INNOPROM-2021 at the Rostov Oblast display.