International Tractors (ITL), the flagship company of Sonalika group and therefore the third-largest tractor manufacturer within the country, on October 21 declared its venture with Shandong Luyu heavy industry Co.
Shandong Luyu, placed at Laizhou Shahe industrial park, Shandong province may be a player in little size loader, small-medium-sized excavator and self-propelled vehicle in China and additionally exports the merchandise to several countries outside of China. The cluster turnover is upwards of $400 million.
This joint venture can modify Shandong Luyu to expand its line up and supply ITL's vary of tractors within the Chinese market. The venture shall additionally assemble the engines for the wheel loader application for captive consumption and different wheel loader construction machinery makers in China.
China is that the second-largest tractor market within the world and therefore the venture can boost Sonalika world growth plans. Sonalika is additionally amongst the biggest businessperson of tractors from India.
Deepak Mittal, managing director, ITL, said: "China market has monumental potential for our range of tractors and with our association with Shandong Luyu we are assured of providing farmers in China with best at school technology at the competitive price point."
ITL also will offer made-to-order engines for the wheel loader construction machinery application. ITL is already exportation its engines for tractor applications except exploitation its engines in its own whole of tractors sold in India and globally. The JV company can invest $10 million to form a capability of 50000 engine and tractor assembly facility in phase-1 and later on any investments are going to be planned as per the long run growth.
Yang Shao Jie, Founder and Chairman, Shandong Luyu serious trade Company, said: "Today we are taking a leap ahead with the formation of this joint venture and i am proud to say that Sonalika will be setting up an assembling plant in China, a first by an Indian company for engines."