Rostselmash expects revenue to remain flat at 40 bln rbl in 2019

ROSTOV-ON-DON, Nov 29 (PRIME) -- Russian agricultural equipment producer Rostselmash expects its revenue to be almost flat on the year at 40 billion rubles in 2019, CEO Valery Maltsev told reporters on Friday.

“Our revenue this year will supposedly stay at the same level as in 2018. It comprises different types of products – harvesters, tractors, adapters, towed vehicles, and sprayers – and also different sales markets, including Russia and exports,” he said, adding that revenue should amount to about 40 billion rubles.

The Russian market of heavy agricultural equipment like harvesters and tractors is falling by about 10% on the year in 2019 due to several reasons. Some demand of 2019 shifted to the end of 2018 when discounts for farmers under the 1432 program were increased. This year the program is underfinanced, he said.

“The entire sector of agricultural machine producers needs about 6.5 billion rubles of subsidies for equipment that has already been contracted. But only 3.5 billion rubles were allocated, while 3 billion rubles are still under question whether they will be compensated or not,” he said.

He also said that the company signed an agreement to launch an assembly facility in Azerbaijan, to be launched in 2020, on November 23. Azerbaijan’s market ranges from 150 agricultural machines to 300 machines in different years.

“The country has its own forms of support of local producers, and we plan to launch the project for assembly of machines in 2020. We suppose that it would be about 40–50 machines in 2020, and we will see what comes next,” he said.

Currently, Rostselmash has three assembly facilities outside Russia, located in Kazakhstan and Uzbekistan.

(64.1005 rubles – U.S. $1)

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