KYIV. Oct 9 (Interfax-Ukraine) – Public joint-stock company Kharkiv Tractor Plant has signed a contract to supply up to 1,000 engines to Volvo, Plant Director General Vladyslav Hubin said at a press conference on Thursday.
“The contract was signed in February – this was shipment of test engines. The contract for batch supplies was signed in late September,” he said.
Hubin said that Kharkiv Tractor Plant signed the contract with Volvo, as on February 12, 2015, a moratorium on exports of goods from Russia to Ukraine was introduced by the Russian government, and the Kharkiv plant lost its chance to buy engines from Avtodiesel Yaroslavl Motor Plant and has not been able to ship the engines since summer 2015.
Hubin said that these are Volvo engines with 240-250 hp. The contract would enable the installation of engines on half of the tractors made by the plant, while the second half of the tractors which are to be sold to Russia are equipped with YaMP engines made in Belgorod.
Volvo engine costs 50% more than YaMP engines. The installation of the new engine would make the cost of a tractor UAH 80,000 more and with the price of UAH 1.2-1.4 million it is not important.
Hubin said that the top-priority markets for the plant are Asia and Africa.
