AGCO forms Russia joint venture

Agricultural machinery giant AGCO announced this week a joint venture with Russian Machines to build and distribute parts and equipment in Russia.

Duluth-based AGCO and Russian Machines announced the $100 million joint investment Wednesday, saying the companies will build a manufacturing plant near Moscow that will include a show room, training center and eventually a model farm to demonstrate advanced agricultural techniques.

“This joint venture is a very significant step in AGCO’s growth strategy for the Russian market,” Martin Richenhagen, AGCO chairman, president and CEO, said in a news release. “The agricultural sector in Russia has significant potential but needs modernization and efficiency gains.”

AGCO makes tractors and other agriculture equipment under brands including Challenger, Fendt and Massey Ferguson.