International Tractors (ITL), the flagship firm of Sonalika Group & the third-largest tractor manufacturer in the country yesterday (21 October 2019) announced its joint venture (JV) with Shandong Luyu Heavy Industry Co. Shandong Luyu Heavy Industry, located at Laizhou Shahe Industrial Park of Shandong province, is a dollar 400 million company with presence in small-sized loaders, small-medium-sized excavators & forklifts in China. It also exports products to other countries outside China.
With this joint venture Shandong Luyu will be able to expand its product line up & offer ITL's range of tractors in the Chinese market. The joint venture will also accumulate the engines for the wheel loader application for captive consumption & other wheel loader construction machinery manufacturers in Beijing.
It is important to mention that China is world's second-largest tractor market and the JV will increase Sonalika's global expansion plans. Sonalika group is the largest exporter of tractors from India.
Managing Director, ITL, Deepak Mittal said, "China market has huge potential for our range of tractors & with our association with Shandong Luyu , we are confident of offering farmers in China with best in class technology at competitive price point."
International Tractors will also offer customized engines for the wheel loader construction machinery application. It is already exporting its engines for tractor application besides using its engines in its own brand of tractors sold all across the world. The Joint Venture Company would invest $10 million to create a capacity of 50000 engine & tractor assembly facility in phase-1 & later on further investments will be planned according to the future expansion.
Founder & Chairman of Shandong Luyu Heavy Industry Company, Yang Shao Jie said, "Today we are taking a leap ahead with the formation of this Joint venture & I am proud to say that Sonalika will set up an assembling plant in China - a first by an Indian company for engines."
