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Negotiations on the purchase of the assembly line assets at Doncaster, which is scheduled to close at the end of this year, and for the ongoing supply of transaxle assemblies from Argo's Dizier plant in France, are continuing, it added. The move would allow Kamaz to assemble farm tractors at its headquarters in Naberezhnye Chelny based on the McCormick XTX design. In the future, several models of the McCormick farm tractors with horsepower ranges from 84-225 will be produced at Argo's Fabbrico site in Italy that has obtained major investment for upgrades. "Valuable economies of scale will result from combining the production of Argo's McCormick and Landini tractors on one site," the firm added. Late last month, AGCO Corp. completed the previously disclosed purchase of a 50% stake in the Italy-based Laverda-S.p.A, a unit of Argo. Terms of the deal were not disclosed. AGCO disclosed plans of the stake purchase last June and was waiting on approval from European Union regulatory authorities to close the deal. So far, AGCO has yet to disclose plans to change or invest in Laverda's operations, but details will be forthcoming, a spokesman said. Laverda will retain its brand for its farm machinery and AGCO will not include Laverda as part of its brand portfolio, according to a source familiar with the deal. AGCO and Argo are also currently negotiating which executives from the respective companies will hold seats on Laverda's board of directors, the source said. Agco said last June the acquisition is intended to expand the company's harvest machinery offerings, following a statement 2 years ago by AGCO's chairman, president and CEO Martin Richenhagen, that the company would "deploy all the resources necessary to become a world leader in harvesting technology." Laverda, which has produced combine harvesters for over 50 years and agricultural machinery and equipment since 1873, previously manufactured mid-range combines for AGCO's Massey Ferguson, Fendt and Challenger brands for distribution in Europe, Africa and the Middle East since 2004, at its facility and headquarters in Breganze, Italy, AGCO said. AGCO also said its joint stake in the company with Argo will include Laverda's Fella-Werke GMBH, a German manufacturer of grass and hay machinery, and Laverda's 50% stake in Gallignani S.p.A, an Italian manufacturer of balers.
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