Busy Moves by Domestic Agricultural Machinery Companies Amid Ceasefire Hopes
Daedong Signs 30 Billion KRW Tractor Supply Contract with Local Distributor
As expectations for the end of the war grow, with U.S. President-elect Donald Trump urging ceasefire negotiations between Ukraine and Russia, the domestic agricultural machinery industry is accelerating its efforts to participate in Ukraine's post-war reconstruction projects. Ukraine is one of the world's three major grain-producing regions, with annual tractor imports exceeding 1 trillion won.
Daedong announced on the 13th that it is negotiating the supply volume of tractors by period for 2025 with a local distributor in Ukraine. Along with this, they are discussing the overall system for sales and services in the Ukrainian market, including local service and technical training, and parts supply systems in preparation for the end of the war and ceasefire. This is a follow-up to Daedong’s wide-area distribution contract signed last month with a Ukrainian company to supply tractors worth 30 billion won over three years.
Since last year, Daedong has been promoting an agricultural reconstruction project in Ukraine and discussing cooperation plans with local stakeholders. As a result, they signed a pilot contract to supply 10 tractors in June this year, and after quality evaluations, they concluded a wide-area tractor distribution contract. Daedong explained that their products received favorable evaluations from local farmers in terms of performance, quality, diverse agricultural machinery lineup, and systematic parts service response.
Daedong’s tractors will begin full-scale sales early next year. The company plans to continuously expand the business and, in the mid-term, extend its business scope based in Ukraine to neighboring Central Asian countries.
TYM, a specialized agricultural machinery company, has also been actively promoting post-war reconstruction projects by donating agricultural machinery to Ukraine. Following the donation of 10 tractors worth 400 million won and approximately 100 million won in cash in April 2022, last year they donated tractors and 14 sets of implements worth 400 million won. This year, they additionally donated agricultural machinery worth 550 million won last month. The donated items include tractors, 20 sets of implements, and maintenance parts.
The donated products are expected to be important resources for farming, construction, and urban maintenance work in areas heavily damaged by the war. Through this, TYM explained that they are maintaining close cooperation in Ukraine’s reconstruction projects.
An industry official said, "Amid a sluggish global agricultural machinery market, there is high hope that the Ukraine reconstruction project can open new opportunities." He added, "Each company will strengthen cooperation with Ukraine’s agricultural sector to successfully enter the market and implement strategies to reinforce their position in the global agricultural machinery market."
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