CNH Global N.V. ("CNH"), a worldwide leader in the agricultural and construction equipment business and part of Fiat Industrial, announced today it will build a new manufacturing plant in Harbin, in the Heilongjiang Province, northeast China, with an initial investment of USD 90 million.
The new facility, which is planned to be 400,000 m2, will produce high horsepower tractors, combine harvesters and other machinery featuring advanced technology. With this investment, CNH will expand its manufacturing base in China, where it currently assembles high horsepower tractors and other agricultural equipment in Harbin, and operates a manufacturing plant dedicated to low and medium horsepower tractors in Shanghai.
Richard Tobin, current CFO of CNH who will take over as President and CEO in January 2012, commented: "China is a very important market for us and we strongly believe in its potential. CNH has invested in this country for more than 100 years, when the first International Harvester tractor was imported to China. We have since steadily developed our relationship with China and will continue to invest to ensure our customers have access to our best technologies and expertise."
Today, CNH is a Chinese market leader in high horsepower tractors and harvesting equipment through its two agricultural brands, Case IH and New Holland Agriculture. CNH is also present in China's construction equipment industry primarily through the distribution of Case excavators, backhoe loaders, skid steer loaders and other equipment. The investment in a new manufacturing base will further strengthen CNH's position in China and will enable its agricultural equipment brands to contribute to the mechanization of the country's fast developing agriculture sector.