Minsk Tractor Works To Invest in Expanding Factory In Krasnodar

The Minsk Tractor Works (MTW) of Belarus plans to invest ₽1.6 billion (US$20.3 million) to develop an agricultural machinery assembly production in Krasnodar, according to Veniamin Kondratyev, the Krasnodar Governor.

He stated that “Two years ago, the large-unit assembly of two Minsk Tractor Works models began in Starominskaya, with prospects for expanding production. Now, Krasnodar MPs have approved a special investment contract, which was signed jointly with the Russian Industry and Trade Ministry and MTW’s Kuban branch. Starting this year, we will establish assembly production for three additional modified Belarus tractor models that feature a high degree of localization. Two of them are new and will provide agricultural machinery for the region’s horticulturists and viticulturists.” Krasnodar is on the east Black Sea coast close to Crimea. The region is well known for its agricultural production, which includes some of Russia’s finest wines.

The production will use component parts from Krasnodar manufacturers. Over 300 jobs will be created. In turn, regional authorities will exempt the investor from paying corporate property tax.

The manufacture of agricultural machinery is one of the priority industrial sectors in Krasnodar, with over 30 businesses operating in this field. The region assembles tractors, grain harvesters, headers, and grain transport trailers. It also produces irrigation machines, towed soil cultivation equipment, and components.

The Minsk Tractor Works is one of the largest producers of tractors and agricultural machinery in the Commonwealth of Independent States. Belarus is also a member of the Eurasian Economic Union, along with Russia, which offers other tax and investment breaks as part of the free trade zone. The Minsk Tractor Works (MTZ) supplies equipment to several CIS countries, including Azerbaijan, Kazakhstan, Kyrgyzstan, and Uzbekistan. According to information for 2024, MTZ actively cooperates with all countries of the Shanghai Cooperation Organization (SCO). Overall, the company’s equipment is supplied to 125 countries worldwide.

The assembly facility of MTZ agricultural machinery was established in the Starominsky District of the Krasnodar Territory since 2022. Approximately 300 agricultural machines are assembled there each year, including Belarus tractors. It was also reported that MTZ plans to increase production volumes to 1,000 units per year in the future.