The new facility would have an installed capacity to produce 50,000 engine and tractors annually.
Pune: Sonalika International Tractors, the flagship company of Sonalika Group and India’s third-largest tractor manufacturer, will set up a new tractor assembly facility in China to expand its international footprint.
The new facility would have an installed capacity to produce 50,000 engine and tractors annually. Sonalika has partnered with the Chinese Shandong Luyu Heavy Industry Company to enter lucrative Chinese market via a joint venture, Luyulika (Laizhou) Agri Machinery Company.
Both the companies will invest a total of S10 million or Rs 70 crore in the joint venture. While the Chinese will hold a majority stake of 51 per cent and the Indian partner 49 per cent.
“Sonalika will be setting up an assembling plant in China, a first by an Indian company for engines,” Yang Shao Jie, founder-chairman at Shandong Luyu Heavy Industry Company,” said.