• 26-MAR-2018

Ukrainian farming operation expands machinery fleet with $11m deal for new Case IH agricultural equipment

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Case IH wins tender for large order of machinery from leading Ukrainian agribusiness / Deal involves 50 machines including tractors, sprayers and cultivators / Agreement will help company farm an expanding land area

In one of the largest recent sales of tractors and agricultural equipment in the country, farming business Epicenter K has expanded its fleet of machines in an $11m deal that will help it to handle an expanding land area. The tractors, sprayers and tillage equipment were supplied by Case IH importer Titan Machinery Ukraine, part of a corporation which is one of the world’s largest market operators for Case IH equipment, and has more than a dozen branch offices in Europe, encompassing Bulgaria, Romania, Ukraine and Serbia. It also has a network of 105 branch offices and dealerships in its home country of the United States.

The agreement involved the purchase of 50 separate items of equipment, comprising two QuadtracTM 600 articulated tracked tractors, 19 MagnumTM 340 tractors, 17 Patriot® 4430 sprayers and 12 True-TandemTM 335VT vertical tillage tools.

Epicenter K manages land assets of over 110,000 hectares, and has operated in Ukraine since 2015. The company has significantly increased its land assets in recent years, with a land fund concentrated mainly in the Cherkasy, Khmelnytsky, Ternopil, Vinnytsia and Kyiv regions, and has plans to grow its land area further. Cropping is concentrated on winter wheat, sunflowers, corn and winter oilseed rape.

Negotiations around the deal began in summer 2017, and were supported by a local hands-on demonstration of the equipment involved. Epicenter K announced a tender for the purchase of equipment and invited offers from various manufacturers that operate in Ukraine and are able to meet the company’s machinery needs. The decision in favor of Case IH was said to be based on the ratio of price to quality, a complete dealer network and the unique advantages of selected products. The latter included articulated rubber track technology in QuadtracTM tractors, which allows operation earlier in the season in situations where other types of wheeled or crawler tractor could cause soil compaction and damage, and the unique Aim Command FlexTM system for Patriot® sprayers, which enables operators to control nozzle output by automatically adjusting the application rate to the specified sprayer parameters and speed.

The final terms of purchase, delivery, service and specification of the equipment fleet were discussed on the brand’s stand at the 2017 Agritechnica exhibition in Hannover, where senior management from Case IH, Titan and Epicenter K shook hands on the deal.

The agreement also affirmed the parties’ intentions to work together over the longer term, and negotiations surrounding the purchase of a large batch of Axial-Flow® 9240 flagship combines and 6.7m-wide Ecolo-Tiger® 875 disc rippers are already underway.

Sankt Valentin, 26th March 2018