CNH Global N.V. last week announced that its second joint venture in China has received its business license from the Shanghai Industrial and Commercial Administration Management Bureau of the People's Republic of China. The license grants Shanghai New Holland Agricultural Machinery Corp. Ltd., full permission to begin operations and conduct business in the People's Republic of China.
Shanghai New Holland Agricultural Machinery Corp. Ltd., was formed by an agreement between Shanghai Tractor and Internal Combustion Engine Corp., a wholly-owned subsidiary of Shanghai Automotive Industry Corp., and CNH's New Holland brand of agricultural equipment. The joint venture company will manufacture, distribute and ultimately export agricultural tractors under 100 horsepower.
“Together, we expect to improve the mechanization of agriculture in China,” said Paolo Monferino, president and CEO of CNH. “CNH will share the New Holland brand's technology and ultimately, its distribution network. New Holland now has a full line presence in the People's Republic of China and I expect this joint venture company will foster improved local economic activity and increased farm productivity in the world's most populous country.”
The board convened for the first time on Dec. 11, directors were expected to confirm the company's new leadership by electing Li Ji Rong as its chairman of the board, Jean-Marc Perrier as its vice chairman, Lucio Catone as the company's managing director and Shen Quan as the executive deputy general manager.
It is expected that annual output at Shanghai New Holland will reach more than 18,000 tractors and about 16,000 engines by 2007. CNH will hold a 60 percent equity share and Shanghai Tractor will hold the remaining 40 percent equity share.
