Agricultural equipment maker bets on China for new growth

Global leading agricultural equipment manufacturer CNH Industrial is betting on China's market potential to generate new revenue growth, a top executive said.

"China has always been a strategic market for CNH Industrial both for its size, as well as the potential for future growth…We will keep introducing the latest technologies and products that are customized to meet the demands of Chinese customers and provide them with the best in class service to maximize their productivity and efficiency," said Stefano Pampalone, president for Asia, Middle East, and Africa at CNH Industrial.

According to Pampalone, China will see surging demand in more sophisticated technologies, such as precision farming and larger equipment.

"Our industry is experiencing an ever-accelerating rate and growing magnitude of change fueled by mega-trends, such as digitalization, automation, electrification," Pampalone said.

Accordingly, Pampalone said, CNH Industrial is seeking to become more customer-centered and more market focused, enabling technology and product innovations both in terms of hardware and software.

Currently, the company has six plants and five research and development centers across China. Its Harbin plant is the biggest agriculture manufacturing base in Northeast China.

"We have made great investments here (in China), including over 1.2 billion yuan ($171million) for our agriculture equipment manufacturing complex in Harbin," Pampalone said

"Our business in China has been increasing steadily, with an 8 percent combined average growth rate for consolidated revenue from 2013 to 2018, " he added.

To date, China has become one of the world's largest agricultural equipment manufacturers, according to a report by data analyst agency Research and Markets.

The report said the majority of manufacturers are located in Central China's Henan province, Northeast China's Liaoning province, and East China's Shandong, Jiangsu and Zhejiang provinces.

China's agricultural equipment market is expected to reach $50 billion by the end of 2025, according to the report.