Konstantin Babkin, co-owner of the Rostselmash group, spoke about the fate of the company's production site in Canada. The enterprise, acquired back in 2008, had to be sold in 2023 due to strict protectionism from the Canadian authorities.
Babkin recalled that RSM acquired a tractor plant in Canada in 2008, and in the mid-2010s, following its example, organized tractor production in Rostov-on-Don. Production in Canada operated until 2023, but problems began in 2020: due to the pandemic, visas for Russian employees stopped being issued, then the export of spare parts to Russia was banned.
In 2023, the Canadians introduced strict protectionism, saying: "That's it. Sell the plant urgently. If you don't manage it in a few months, we'll take it away." We sold it for a third of the price.
He also noted that back in 2013, at the request of the president, he wrote a memo comparing production conditions in Canada and Russia. At that time, he pointed out two competitive advantages of Russia — lower wages and cheap gas. All other parameters — taxes, logistics, security, accounting, cost of loans — were cheaper in Canada. And by the time the plant was sold in 2023, the situation had not changed: Canadian conditions still remained more favorable for business, and Russian wages remained significantly lower.
Recall that in 2007, Rostselmash acquired the Canadian tractor plant Buhler Versatile. In 2009, large-unit assembly of Versatile tractors was launched in Rostov-on-Don with localization of no more than 10%. A partial transfer of capacities occurred in 2015 against the backdrop of expanding Canadian sanctions and improving conditions for state support of localized production. In August 2016, the first tractor under its own brand — model 2375, an analogue of the Canadian Versatile 2375 — was assembled at the Rostov site.
In January 2024, the Turkish company Başak Traktör bought 96.7% of Buhler Industries from Rostselmash — a plant that brought up to 35% of the group's revenue.
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