2 Apr '09
Olga Konovalova, news editor
Earlier this week Marchmont ran a update about American agricultural machine maker John Deere planning to build a plant in the Kaluga region to avoid paying stiff import duties that were making its harvesters and other farm machinery too expensive here.
The measures to support domestic agricultural machinery producers, including import tariff increase, were first announced by the RF Prime-Minister Vladimir Putin in December last year at Rostov plant Rostselmash.
The plant is one of the leading world manufacturers of agricultural equipment with 65% of Russian and CIS market and 17% of the world market.
We asked the Rostelmash's Tatyana Zakablukova what impact the import duties were having on their business. She told Marchmont that new tariffs were creating "a growing demand for domestic machinery," which has enabled the plant to return to full-week operation and to enroll 800 new workers.
Last October, the plant had to switch to three-days week due to the credit crunch, which caused a slump in demand for expensive agricultural machinery because buyers couldn't get bank loans. Until the new tarrifs helped turn things around, Rostselmash was suffering major personnel losses, Ms. Zakablukova added.