CNH Global NV said Monday that it has entered into a joint venture with a Russian company to jointly manufacture agricultural and construction equipment in the Russian Federation.

The agreement between Burr Ridge, Ill.-based CNH Global, the parent of Case IH and Case Construction operations in Racine, and Russian manufacturer OJSC Kamaz will give each firm 50 percent control in the joint venture, CNH-Kamaz Industrial BV. The joint venture has a factory about 1,000 kilometers east of Moscow in Naberezhnye Chelny, where Kamaz is based.

The companies will invest a total of $70 million into the plant, which will initially produce machinery for the Russian domestic market before expanding to serve other Commonwealth of Independent States countries, CNH said in a press release.

"With this JV we aim to significantly increase our operations in Russia," said Franco Fusignani, CEO of CNH International SA. "We expect this alliance to foster improved local economic activity, through CNH's advanced technology, and increased productivity in one of the world's most important markets."

CNH will make available certain New Holland models and technologies, and will integrate the Naberezhnye Chelny plant into its global manufacturing network. Initially, CNH will focus on the production of its New Holland Agriculture and New Holland Construction brands' models, also including components and implements. Agricultural and construction machinery will enter into production immediately for the agricultural equipment models, and by end of the year for the New Holland Construction backhoe loaders. The new plant will be operative in the fourth quarter of 2010, CNH said, but the first units will start to be assembled in April 2010.