Tractor Plants taps on Finland’s Sampo to revive its fortunes

Tractor Plants, now 100 per cent owned by Vnesheconombank as repayment for RUB 15 billion loan, is seeking to restore its fortunes through the joint manufacture of combine harvesters at the Vladimir Motor Tractor Plant in partnership with Finland’s Sampo Rosenlew.

Tractor Plants is currently managed by a management team led by the former owner of the concern Mikhail Bolotin, who says that Sampo’s components will be used to manufacture a new model under the Agromash and Enisei brands.

While this may seem like a good move , sales of Russian combine harvesters are contracting owing to increasing imports, boosted by the fall in the import duty on harvesters from 15 per cent to 5 per cent following Russia’s accession to the WTO.  It remains unclear whether this will resolve the concern’s problems, in particular as Vnesheconombank has on two occasions proposed an alternative approach – a new management team.

 

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