Strategic Base
LS Mtron announced on January 19 that it signed a contract to supply and produce agricultural machinery with Thaco, the No. 1 automaker in Vietnam. The company is planning to make a full-scale foray into the Southeast Asian market from Vietnam.
The agreement stipulates that with an eye towards Vietnam's agriculture modernization, LS Mtron will develop and supply 30- to 50-hp tractors which suit the local terrain and agricultural characteristics by linking to an official development assistance (ODA) project for Vietnam's agricultural mechanization.
At the moment, LS Mtron is currently developing tailor-made tractors and combine harvesters for Vietnam and Southeast Asia. Steady deliberations will determine details such as the size of a factory to be built in the Chu Lai Complex Industrial Complex, tractor supplies and operation plans.
Tractors produced at the Vietnam plant will be supplied to Vietnamese and Southeast Asian markets, and the Vietnam factory will be used as a strategic base for expanding its business in the Southeast Asian market.
Meanwhile, LS Mtron exports tractors to 40 countries and has a production capacity of 50,000 units per year. The company is operating tractor factories in Korea, China and Brazil. Exports account for more than 70% of its total tractor sales.