The maker of Case IH and New Holland tractors and combines is selling its business activities in Russia for about US$60 million.
CNH Industrial, which employs about 200 people in Russia, announced the divestment in a release Wednesday without naming the buyer.
CNH in March last year suspended all shipments and supplies to Russia and Belarus following Russia’s invasion of Ukraine. The company at that time said it “strongly condemns any and all acts of unprovoked violence and aggression, and especially the current war in Ukraine which is having a devastating impact on so many people, including many of our own employees and dealers.”
Read Also
Senft to step down as CEO of Seeds Canada
Barry Senft, the founding CEO of the five-year-old Seeds Canada organization is stepping down as of January 2026.
The company since 1998 has had a corporate office at Moscow, which handles imports, distribution, financing and other business activities. It opened up its parts depot near that city in 2009.
CNH’s main manufacturing plant in Russia, meanwhile, is at Naberezhnye Chelny, about 240 km east of Kazan. CNH in 2009 had made a deal for a joint venture there with Russian heavy truck manufacturer Kamaz.
Up until Wednesday, CNH said, payment of its Russian employees’ salaries and other administrative expenses have been “duly guaranteed.”
For the full fiscal year ending 2021, CNH’s Russian operations had generated revenue of about $380 million, or about two per cent of its consolidated revenue that year (all figures US$).
In its first quarter of 2022, CNH had booked charges of $71 million related to asset writedowns and other allowances following the suspension of its business in Russia. It estimated Wednesday it will take further pre-tax charges of about $20 million on this divestment.
CNH previously noted it had done business in Russia as far back as 1907, when the first Case tractor was shipped there during the reign of Tsar Nicholas II. CNH also noted it had historically been a leader in the combine segment in that country and later expanded its business there into other ag and construction segments. — Glacier FarmMedia Network
