LS Mtron clinches three-year contract to supply 28,500 compact tractors through CNH Industrial

[Courtesy of LS Mtron]

SEOUL -- LS Mtron, a heavy machinery and electronic component manufacturer affiliated with South Korea's LS Group, has clinched a three-year contract worth about 500 billion won ($386 million) to supply 28,500 multi-purpose compact tractors from 2023 through CNH Industrial, an Italian-American agricultural and construction equipment maker.

LS Mtron said its product featuring user convenience, sustainable quality levels, and eco-friendly engines would be sold to hobby farmers, who run farms as a recreational activity, and companies specializing in garden landscaping, mainly in North America and Europe. LS Mtron's tractor is equipped with an eco-friendly engine that meets the European Union's stage five emission standards.

To export non-road engines to the European market, foreign companies are required to meet the EU's stage five emission standards which strictly regulate the emission of chemical compounds such as nitric oxides and carbon monoxides.

LS Mtron CEO Shin Chai-ho said the new contract with CNH Industrial proved the quality of its products. "Based on securing stable work, LS Mtron will focus on strengthening mid- to long-term growth momentum in the future and further accelerate sales in global markets such as North America, Europe, and South America," he said, citing a growing need for small tractors in North America and Europe.

Since 2009, LS Mtron has supplied compact tractors with less than 60 horsepower to CNH Industiral under an original equipment manufacturing (OEM) contract. The South Korean company has sold CNH Industrial's large tractors with 110 horsepower or more in the domestic market.