Increased German farm equipment production in Russia on weaker ruble

German farm equipment manufacturer Claas has announced plans to export machinery produced in the southern Russian city of Krasnodar. The decision was made because of falling production costs in Russia due to a weaker ruble.

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The company plans to export combine harvesters and spare parts made in the Russian factory, which until now were produced for the Russian market.

Demand for efficient harvesting technology is high and there was an ongoing need to modernize, according to the company.

Claas has been working in Russia for the past 23 years. The company began with the export of used machinery followed by production.

The plant in Krasnodar was opened in 2005 making Claas the first large-scale manufacturer of agricultural machinery with its own facility in Russia. The factory was designed to produce 1,000 machines annually. Claas invested €120 million in the project.

In October 2015 the company was classified as a “Russian manufacturer” after signing a letter of intent with the Russian Federation. The company’s headquarters is located in Harsewinkel, North Rhine-Westphalia.