Tractors from Boljevac for India - Agromehanika inks EUR 80 million deal with Sonalika

Management of the Boljevac agricultural machinery manufacturer Agromehanika has signed an agreement with India's Sonalika to produce EUR 80 million worth of tractors a year. Agromehanika CEO Branislav Rajic confirmed this to Novosti.

- We've received so many offers for cooperation, but we've decided to close a deal with Sonalika, one of the world's largest manufacturers of tractors designed by France's Renault - Rajic explained.

- This year we will be assembling tractors in our factory. Three years from now, half of the parts for these agricultural machines will be made in Boljevac, whereas the rest will be imported from India.

Rajic underlined that they would assemble 100 tractors by the year's end, 500 in 2014 and 1,000 in 2015.

- The plan is to produce up to 4,000 tractors a year as early as 2016, thus achieving the annual production of EUR 80 million - Rajic stressed.

The factory in Boljevac, which currently employs over 220 workers, was privatized in 2007, and its new owners have so far invested EUR 3.2 million in production modernization. With the launch of tractor production, it will be necessary to invest at least another EUR 3 million.