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Business

Sino-Japanese venture to start up new farming machinery brand

Dongfeng Motor, Iseki to design low-end offerings for Chinese market

TOKYO -- A joint venture by Japan's Iseki & Co. and a unit of Dongfeng Motor is creating a new brand of agricultural machinery in China, with plans for launching a locally built tractor and two other products by the end of the year.

Dongfeng Iseki Agricultural Machinery (Hubei) now makes products for the Chinese market and other parts of Asia at a Hubei Province plant that opened this February. The venture aims to begin mass production of the new brand in 2018, including of specially designed tractors, combines and rice planters, using its existing equipment and know-how.

For its new brand, Dongfeng Iseki is focusing on lower-cost offerings more suited to China. It is designing a new midsize tractor of about 60 horsepower and will also review components and eliminate certain functionality found in existing products. It hopes to increase market share and the utilization of its Hubei plant by better meeting local needs.

(Nikkei)

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