Daedong makes a full entry into Ukraine’s agricultural machinery market worth KRW 1 trillion
Daedong makes a full entry into Ukraine’s agricultural machinery market worth KRW 1 trillion
- Signs a sales contract with agricultural machinery distributor A, traveling to Korea as part of a delegation featuring a Ukrainian senator to rebuild the nation’s agriculture
- Daedong signed a pilot supply contract for tractors with Company A in June... It scored well among local farmers in terms of product quality and service
- A 3-year, KRW 30 billion regional distribution contract for tractors was signed after mutual visits and ongoing negotiations for a full year
Daedong is the first of its kind in Korea to enter Ukraine in earnest since the outbreak of the Russo-Ukrainian War to supply agricultural machinery, including tractors.
Daedong (Co-CEOs Kim Jun-sik and Won Yu-hyun), a leader in future agriculture, announced on November 21 that it signed a contract with distributor A, which imports and sells agricultural machinery in Ukraine, to supply tractors worth KRW 30 billion over the next three years.
Since last year, Daedong has been discussing plans to work with key local figures in Ukraine, including Senator Oleksandr Denysenko, a member of the National Assembly for Odessa, the largest city in southern Ukraine, and a member of the Development Agency's supervisory board, in promoting the Ukrainian agricultural reconstruction project. Following these negotiations, in June this year, Daedong signed a pilot contract with company A to supply 10 PX/HX tractors with 100~140 horsepower to test the local market, making it the first from Korea’s agricultural machinery industry to enter Ukraine since the Russo-Ukrainian War.
In August, key local figures, including Senator Denysenko, visited Daedong in Korea for initial talks on a local reconstruction project in Ukraine. Then, in October, Daedong sent tractors to Ukrainian farmers, and its engineers taught company A engineers how to service Daedong’s tractors. The excellent performance and quality of the product, the diverse lineup of available agricultural machinery, and the well-organized response to parts and service requests were well-received by company A and local farmers, which encouraged company A and key local figures to visit Daedong and sign the first KRW 30 billion contract to distribute tractors in Ukraine.
The visiting delegation featured eight people, including Senator Oleksander Denysenko and key figures from company A. From November 18 to 20, they visited key facilities, including Daedong's Seoul Office, production plants, and research institute, and they also tried their hands at using products, key technologies, and production and quality management systems. Moreover, in order to promote the sales of Daedong tractors, the company agreed to work together in identifying and developing local dealers in Ukraine, and help the Ukraine government in terms of its procurement activities to support farmers in purchasing the right agricultural machinery. The delegation discussed the additional quantity that can be supplied this year, next year's price, and mid- to long-term supply, and discussed ways to improve the competitiveness of local services as well. Daedong will supply products to company A starting this year. It plans to start selling products in earnest early next year and continue to expand its business thereafter, using Ukraine as a local hub to penetrate neighboring countries in Central Asia over the medium term.
