Strategic agricultural machinery manufacturer Rostselmash on the verge of production line shutdown

The company may switch to idle mode from July due to a sharp drop in demand

The largest manufacturer of agricultural machinery in Russia, the Rostov plant Rostselmash, is on the verge of shutdown. In the context of accumulating huge stocks of finished products and a sharp drop in demand, the company may suspend operations as early as July this year.

The cessation of production activities is mentioned, in particular, in an appeal to the head of government, Mikhail Mishustin, from the Vice Speaker of the lower house of parliament, Victoria Abramchenko, who called on the cabinet to take urgent support measures to save the strategic enterprise. However, it is unknown whether a political decision will help in this situation.

Rostselmash's warehouses have accumulated almost three thousand units of equipment - about 700 tractors and 2.2 thousand combines, which have not found their buyers.

Despite the reduction in the production plan for 2024, 3 thousand combines and 1 thousand tractors, sales remain at an extremely low level.

As a result, the company's management is forced to take extreme measures - from June, employees are sent on paid leave, and in case of further deterioration of the situation, a complete shutdown of production with the payment of two-thirds of earnings is possible.

Read materials on the topic:

With a KAMAZ 689 engine and an automatic transmission from Ford: the Rostselmash 1370 tractor was presented at YugAgro-2024

The largest threshing drum in the world: farmers from Egypt and Libya choose ACROS 595 Plus combines

32 knives, reinforced bearings: the advantages of the F 1300 combine from Rostselmash are named

Sources
Bloknot

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