The opening of a new assembly structure inaugurated in Contagem before last summer is preliminary to these strategies. The structure is situated in an ideal area to foster both production and assembly of agricultural machinery, thanks to the presence of an important network of manufacturers who produce components as well as skilled manpower. So, a little more than a year after the letter of intent signed between the historic Italian brand owned by Argo Tractors Group and the Government of Minas Gerais, the first stage of this industrial adventure was officially launched. The company will invest on it about 30 million Brazilian reals (a little less than 9 million Euros) in the coming years for this project, conceived with the clear strategic choice to start assembling two (and then three) types of agricultural tractors. The top management, when the new site was inaugurated, placed firmly emphasis on their clear will to introduce immediately on the market products with high added value, in order to offer to their customers a quality service. In this first stage, the new plant will have a production capacity of around one thousand units per year, with the aim to increase up to five thousand over five year activity. We spoke with Tiago Bonomo, CEO of the division for America of Argo Tractors and president of ‘Landini Brazil’. He explained their medium-term strategies in the Brazilian market and in general talked about the different economic American realities.

Well thought-out project

Bonomo said: ‘For some years Brazil has been a privileged protagonist of our projects. Beginning from 2010 we started studying more carefully our market, in order to analyze the possibility of starting a local factory. This Country is one of the largest markets in the world for agricultural tractors. Therefore, it is logical choice to think to take part in it as protagonists, as it happens in the rest of the world, in the belief that we can have the right products to compete and grow. Therefore, regardless of the current economic situation, we consider positively the prospects for agribusiness in Brazil’. The immediate goal consists in aiming at offering to the local market a complete range, able to work in all the different agricultural applications typical of Brazil, counting much on versatility and compatibility of tractors with the Brazilian equipment. The proposal consists in manufacturing power tractors from 60 to 200 hp, but at this early stage the domestic market will be supplied with power machines from 100 to 200 hp, with the idea of ​​offering throughout the Brazilian market high quality tractors, realized with advanced technology, building a specialized network of distributors. The choice of focusing initially on this power range, according Bonomo, is preparatory to acquire the ability to enter immediately the most significant segment for the local market. For this market, Landini has already a wide range of both product and technology. Therefore, the company starts from this segment, with three families of product, and, as soon as further opportunities will emerge, the company will intervene in order to broaden its portfolio of tractors.

Medium-term goals

After a work aimed at assembling and testing both prototypes and pre-series, the serial production itself was officially started in last October, with scheduled deliveries until March 2016. Bonomo continued: ‘At present, our goal consists in optimizing our distribution network and organizing demonstration events in order to promote both brand and product positioning in the market. It will be certainly not easy and it will be possible to appreciate the results only by reasoning on long term prospects. But we believe in our competitive advantages related to the product we offer. We are sure that we will be able to meet important results in the coming years’. At present, the Group has a share of between 3 and 4% of the world market, with peaks of 20%. Reasoning in Brazilian perspective, these figures are much high, in a geographic area for which a gradual work has just begun, but there is the belief that, focusing on the quality of the product, growth could lead Landini Brazil, in a few years, to reach shares of between 2 and 3% of the market. In this Country, this means more than a thousand tractors a year.

The importance of network

History, Italian design, technology, but not just this. As a matter of fact, Landini is preparing itself to launch products that have been analyzed, developed and manufactured thinking specifically to the Brazilian market. This brand, which boasts more than 130 years of tradition, represents a guarantee, also thanks to the important support coming from the Italian mother company. Besides this, there is clear will to present itself in Brazil with a modern media, with cabin and cockpit of European level. Bonomo specified: ‘Our tractors will offer high performance to ensure lower fuel consumption, more reliability, and longer maintenance cycle in comparison with other machines produced in Brazil. We count on all these factors in order to orient favourably buyers’ choices’. The dealer network, identified in time and already operating with machines imported from Italy, is made up of about 55 companies, mainly located in the regions of the south, southeast and centre-west of Brazil. For some time several training activities were initiated and conducted, and other ones have been planned until the end of 2016. In Contagem there is the belief that staff training for dealers is one of the keys to a successful project that can put them in the best conditions for selling the products, and above all in order to guarantee adequate after-sales technical support. The segment between 100-130 hp is undoubtedly the one on which at present more requests are concentrated, probably due to the favourable impression provided by the new product, called ‘Landforce’. It is modern tractor, designed for Brazil, with excellent technical characteristics and ergonomic driving position. But the project for Brazil is a long-term one. As a matter of fact, according to Bonomo, the company has carefully planned this first stage and when it is consolidated the next steps will be prepared, starting from enlargement of the range of product and options, as well as production capacity, also from the viewpoint of enrichment of the technological offer of the product, considering the right time to introduce innovations already available on the Italian market.