Photograph of the Boomer model being supplied to CNH Industrial
■ To supply multi-purpose tractors for hobby farming and other purposes in North America and Europe that offers user convenience, sustainable quality, and the eco-friendly ‘Stage 5’ engine
■ Secured a stable supply with quality certified through 14-year partnership with the world’s No. 2 agricultural machine manufacturer, CNH Industrial
■ President Chai-ho Shin stated, “LS Mtron will focus on enhancing mid/long-term growth momentum in the future by securing a stable workload and further accelerate growing sales across North America, Europe, South America, and the rest of the global market”
On December 5, LS Mtron (CEO Chai-ho Shin), the industrial machinery and advanced parts manufacturer of LS Group, revealed that the company has concluded a tractor supplier agreement worth approximately KRW 500 billion (28,500 units) targeting the North American and European markets with CNH Industrial, the world’s no. 2 agricultural machine manufacturer, running between 2023 until 2025.
The tractor supplied through this agreement is a multi-purpose product mainly sold to hobby farmers or companies operating garden landscaping businesses in North America and Europe, and it offers user convenience, sustainable quality, and the eco-friendly ‘Stage 5’ engine.
LS Mtron has been the OEM supplier of compact tractors with less than 60 HP for CNH Industrial since 2009, beginning with the Australian and Southeast Asian markets, and the company has been expanding its cooperative relationships with a focus on growing sales in markets for developed countries such as North America and Europe. The company’s total sales were expected to surpass KRW 1.2 trillion (approx. 88,000 units sold) by the end of 2022.
Aside from supplying small and medium tractors in the global market, LS Mtron has also been importing and selling large tractors above 110 HP from CNH Industrial to continue growing its cooperative relationship with the company, and the two currently have a strategic relationship with CNH Industrial. Through this agreement, LS Mtron has secured a stable workload in the mid-term, despite concerns of economic recession and market uncertainty following changes in the global environment.
The market targeted for this agreement is North America, which is one of the largest agricultural machine markets in the world, and the demand for small tractors, a specialty of LS Mtron, has increased significantly, especially since the COVID-19 pandemic. Sales of LS Mtron tractors have also been increasing rapidly in Europe, which is a market with leading agricultural machine technology. LS Mtron expects such trends to help significantly in lowering its high export concentration in the North American market and importing advanced futuristic agricultural machine technology into Korea.
CNH Industrial is a global manufacturer in the field of agriculture and construction based in Italy, and its agricultural machine division has achieved annual sales of USD 14.7 billion (as of 2021). Recently, the company has acquired full control (USD 2.1 billion) of Raven Industries in North America, a manufacturer of key components related to precision agriculture, in an effort to transform itself into a leading enterprise in agricultural technology in the future.
The CEO of LS Mtron stated, “This agreement is more than a means to simply secure sales. It is the result of our quality being acknowledged by the world’s no. 2 agricultural machine manufacturer, CNH Industrial, through our partnership for past 14 years and our focus on strategic communication with global customers,” and added, “LS Mtron will focus on enhancing mid/long-term growth momentum in the future by securing a stable workload and further accelerate growing sales across North America, Europe, South America, and the rest of the global market.”
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