Production in Russia is cheaper

In Rostov-on-Don, Russia, Rostselmash is launching localization of their four-wheel drive tractors which are currently manufactured in Winnipeg, Manitoba.

The core manufacturing site of Rostselmash plans to establish production of their Canadian Versatile 4WD series, i.e. models 380/405/430/460. The first assembly line is scheduled for 2019, with a full cycle of tractor manufacturing being arranged for 2020-2021. According to Director of Marketing Department of the company Prokhor Darmov, production transfer is based on economic reasons. The tractor assembly in Russia becomes more profitable for Rostselmash. At the same time, political factors, “due to which it is getting harder for Russian entrepreneurs to do business in America,” are also taken into consideration.

Versatile, Canadian manufacturer of agricultural tractors, was bought by Rostselmash in 2007. Until 2016, the Russian company had been producing a range of machines in their factory in Winnipeg. In 2016, during the first wave of localization, it brought the Versatile’s 2375 model to Rostov-on-Don. This second wave of localization, most probably, won’t be the last. Rostselmash plans to introduce assembly lines for other series of the Canadian equipment.