Fiat-owned global agricultural and construction equipment manufacturer, CNH Global, is developing plans to set up tractor production in Russia, according to the Russia Interfax new agency. Russia’s Agriculture Minister Alexey Gordeev met CNH Vice President Franco Fusignani on Friday to discuss manufacturing of Case New Holland tractors in Russia, revealed leading newspaper Kommersat. CNH will develop an initial feasibility study in time for the next meeting of Gordeev and representatives of consortium, which is expected in the autumn.

This is the third major manufacturing project in the agricultural and construction sector to be announced in Russia during the last few months and comes on top of plans by KamAZ to team up with Italian firm Landini to assemble tractors while Rostselmasg has acquired Canadian tractor maker Buhler, and plans to set up local production of its range.

Meanwhile across the Atlantic CNH has recently announced it will assume operating responsibility for seven North American parts depot operations that are currently being managed by its third-party logistics supplier, Caterpillar Logistics Services Inc. “Our decision to assume direct responsibility for our distribution network represents a strategic change in the way we service our customers.  This change is consistent with our new brand-focused strategy and will allow us to take a more hands-on approach in providing best-in-class parts and service support to the brands," says Ugo de Carolis, President-CNH Parts & Service.
 

"Which is key to building long-term relationships with our customers," he added. The depots being in-sourced are located in Lebanon, Indiana; Greenville (Dallas), Texas; Doraville (Atlanta), Georgia; Mountville, Pennsylvania; Regina, Saskatchewan; Toronto, Ontario; and Carol Stream, Illinois. Cat Logistics has provided parts distribution support to CNH and its predecessor companies for the past 14 years. “We greatly appreciate Cat Logistics support over the years and are confident we can build on the strong foundation it has provided," de Carolis also said.

The company will work closely with Cat Logistics over the next several months to complete the transition process and expects to assume full control of the depots during the first quarter of 2008. To help maintain customer service levels and ensure a smooth transition, Cat Logistics employees at the impacted depots will have the opportunity to be considered for positions with CNH. Cat Logistics continues to operate the depot in Reno, Nevada.  CNH-operated depots in San Leandro, California, and Cameron, Missouri, are not impacted by the announcement.