International Tractors Ltd (ITL) on Monday announced a joint venture with Shandong Luyu Heavy Industry Co. With the JV, the flagship firm of the Sonalika Group eyes entry to the Chinese market. As per the agreement, Shandong Luyu will offer ITL’s range of tractors in the Chinese market.
The partners will also assemble engines for the wheel loader application for captive consumption of Shandong Luyu and other wheel loader construction machinery makers in China.
The JV company will invest $10 million to set up a manufacturing facility in China with an installed capacity of 50,000 engine and tractors in the first phase.
“ITL is a trusted brand among 1 million farmers in India and abroad... China market has enormous potential for our range of tractors. With our association with Shandong Luyu, we are confident of providing Chinese farmers best-in-class technology at competitive price points,” ITL managing director Deepak Mittal said.