Valmont Industries has signed an agreement with the government of Kazakhstan to invest in a new plant to produce irrigation systems in the Asian nation.
The agreement was finalized at the same time as an agreement between Kazakhstan and Tyson Foods. Tyson will invest in the construction of a meat processing complex.
The agreement between Valmont and the Kazakh Ministry of Agriculture also includes Kusto Group. The broad aim of the agreement is to improve agricultural productivity in Kazakhstan.
The agreement outlines a road map toward the construction of a plant in Kazakhstan for the manufacture of Valley pivots, with an annual production capacity of 1,000 machines. Operations would begin in 2022.
Kazakh leaders said Valmont’s irrigation technologies should increase crop productivity while it cuts agricultural costs in half.
With a population of 18 million, Kazakhstan is the ninth largest country in the world.
“Kazakhstan occupies a strategic location at the crossroads of Europe and Asia, and 75 percent of its territory is suitable for agriculture,” Nebraska Gov. Pete Ricketts said during a visit from Kazakh leaders. “Given Nebraska’s agricultural expertise, we have a clear opportunity to develop a mutually beneficial relationship with Kazakhstan.”
In other news from Valmont Industries, the company has agreed to acquire the remaining 49 percent stake in AgSense. The acquisition is expected to close later this month.
Sources: Astana Times, Nebrasks Farmer, Business Wire
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