Turkey's biggest farm tractor producer and exporter

Türk Traktör, a joint venture of Koç Holding and CNH Global NV, one of the world's largest tractor and agricultural product manufacturers, has been operating in Turkey since 1954. Despite the 50% contraction in the domestic market and price pressure resulting from the devaluation of the Turkish Lira on farm tractor imports from Europe and the U.S., Türk Traktör was able to increase its market share due to its strong distribution network and large customer portfolio. 

With 102 tractor dealers offering the New Holland brand, 71 spare parts dealers, and 434 service dealers, the Company now has the largest dealership network in Turkey. The Company integrated its manufacturing and service operations by merging with New Holland Trakmak in March 2008. The Company further expanded its dealer network with the CASE IH brand launched in 2007, adding 12 new dealers providing, spare parts and technical support.

Significant changes occurred in market demand in 2008 and 2009. Türk Traktör successfully adapted to volatile market conditions by making use of the vertical integration of its production structure. In order to minimize the effects of the crisis and decrease inventory for all products, the Company downsized its domestic tractor production, strengthened collection procedures, and revised its commercial and industrial investments.

Increase in all market shares

With its annual tractor production capacity of 35,000 units and engine production capacity of 25,000 units, Türk Traktör is the largest domestic manufacturer in the sector. In 2008, the Company increased its market share of New Holland branded products by 10% to attain a market share that is 30 points higher than that of its closest rival, thus consolidating its leadership position. The CASE IH branded vehicles launched in 2007 increased their market share from 0.4% to 2.4%. Through new product launches in the combine harvester market, dealers with a high level of expertise and comprehensive after-sales support service, the Company was able to retain its market share and leadership. Moreover, in the cotton harvesting machine market, the Company performance well, increasing its market share by 7%.

Expanding product range in a contracting market

Türk Traktör has the largest product range in Turkey, offering Turkish farmers 68 main models and 250 variations under the New Holland brand. In conformity with new engine emission and noise regulations, all models were upgraded in 2008 and existing models were supported with new features in line with customer expectations.

R&D focus

Türk Traktör has one of the largest R&D departments of any industrial company in Turkey. The Company strengthened its position in the market in 2008 through the high quality products it manufactured using its own R&D resources and technology. Türk Traktör is among the most important R&D centers within the Case New Holland universe and aims at maintaining this position.

Awards

In 2008, Türk Traktör received numerous awards:

·          The “Agricultural Industry Success Award” given by the Turkish Society of Agriculturists;

·          The “Quality Circle Award” given by the Turkish Society for Quality (KalDer) Ankara Branch for its project that provides 100% product recycling; and

·          The award  for “Best Application at Industrial Level” given by the Ministry of Employment and Social Security, for its project to eliminate risks on the assembly lines by conducting a workbench-based risk analysis.

The Company has started providing “Risk Analysis” training for blue collar workers and as part of this project, risk analyses using control lists have been conducted in the field. A total of 10,000 points have been checked and 225 improvements achieved thereby significantly improving personnel safety.

Corporate Governance Index

Türk Traktör improved its corporate governance raiting from 7.52 to 7.83 and is one of the leading companies in ISE Corporate Governance Index.

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