LS Mtron Signs 500 Billion KRW Tractor Supply Contract with World No.2 CNH

"Targeting Hobby Farms in North America and Europe... Sales Expected to Reach 1.2 Trillion This Year"

LS Mtron's 'Boomer' supplied to CNH Industrial, the world's second-largest agricultural machinery company. (Photo by LS Mtron)

[Asia Economy Reporter Moon Chaeseok] LS Mtron, an industrial machinery and advanced components specialist under LS Group, announced on the 5th that it has signed a tractor supply contract worth 500 billion KRW with CNH Industrial, the world's second-largest agricultural machinery company. The company plans to accelerate its targeting of the hobby farming markets in North America and Europe.

LS Mtron revealed that it has signed a contract to supply 28,500 tractors to CNH Industrial over three years from next year through 2025. These are multipurpose products sold to hobby farmers and garden landscaping companies in North America and Europe. A key feature is the adoption of the eco-friendly 'Stage 5' engine. CNH Industrial, headquartered in Italy, is a global manufacturing company that recorded annual sales of 14.7 billion USD (approximately 19 trillion KRW) in the agricultural machinery sector last year.

LS Mtron stated that since 2009, it has been supplying compact tractors under 60 horsepower to CNH Industrial through an Original Equipment Manufacturer (OEM) arrangement, starting with Australia and Southeast Asia. The company is expanding cooperation focused on advanced markets such as North America and Europe. North America is one of the largest agricultural machinery markets, especially with a surge in demand for small tractors, an area where LS Mtron has strengths, following the COVID-19 pandemic. Europe is a region leading agricultural machinery technology, where sales of LS Mtron tractors are significantly expanding.

LS Mtron expects to record cumulative sales exceeding 1.2 trillion KRW this year, with supply volume reaching about 88,000 units. While supplying small and medium-sized tractors globally, domestically it imports and sells large tractors over 110 horsepower from CNH Industrial.

Thanks to the contract, LS Mtron believes it has secured a stable volume base in the mid-term despite heightened concerns over economic recession and market uncertainties.

Shin Jae-ho, CEO of LS Mtron, said, "This contract is meaningful not only because it secures sales but also because it reflects the quality recognition from CNH Industrial, with whom we have maintained a partnership for 14 years." He added, "Based on stable order acquisition, LS Mtron plans to focus on strengthening mid- to long-term growth momentum and accelerate sales expansion in markets such as North America, Europe, and South America."