In keeping with the plans, the Czech agency will likely be dedicated to open a brand new division in Kurdistan Area earlier than 2030, however the firm will begin an meeting sector in 2020 the place native labour power are deliberate to assemble automobile components imported from the Czech Republic.
The negotiations haven’t been finalised however the ministry is hopeful that the events will signal a contract within the coming months.
“There will likely be three phases; first the Zetor firm will export 100 totally manufactured tractors to the Kurdistan Area which we plan to promote to Kurdish farmers at subsided costs,” mentioned Anwar Omar on the ministry.
“Within the second part, most likely earlier than 2020, Zetor will begin an meeting division right here in Kurdistan the place Kurdish technicians will assemble and likewise study the manufacturing processes.”
“Within the final part, inside 10 years, the Czech firm will open an entire new division in Kurdistan the place the tractors are manufactured and assembled utilizing native labour expertise,” Omar mentioned. He was hopeful the corporate would promote a enough variety of tractors to keep up its workplace in Kurdistan sooner or later.
The enterprise is nevertheless not promising in the intervening time with gross sales down by virtually 50 p.c, in keeping with tractor sellers who’ve spoken to Rudaw. The Kurdistan Area remains to be recovering from a paralysing monetary crunch of the previous two years.
“We offered round 15 autos in 2013 and earlier than that. Now we’re fortunate if we promote 5 or 6,” mentioned Rebin Faris who owns a tractor agency in Erbil.
“Farmers don’t wish to take any dangers and as a substitute use their outdated tractors,” Faris added.
The financial disaster is simply a part of the rationale behind the decline of tractor gross sales. Over the previous three years, the central authorities in Baghdad has delayed components of annual compensation to farmers within the Kurdistan Area, a debt that has grown to almost $1 billion.
The costs of recent tractors vary between $14,00zero and $40,00zero relying on their high quality.
In keeping with the ministry, there are round 16,00zero tractors at the moment working within the Kurdistan Area however most of them are extraordinarily quaint and ought to be changed by new autos to spice up the manufacturing.
“Round 75 p.c of those tractors are very outdated and have been imported within the 1970s and 1980s. There are not any spare components to keep up them once they broke and their working life has actually ended very long time in the past,” Hasan Hussein on the ministry informed Rudaw.
Zetor Tractors is a model of tractors primarily based in Brno Líšeň within the Czech Republic. The corporate manufactures farming tractors and tractor elements, engines, transmissions, and so forth. Within the 70-year-long historical past, Zetor has offered over 1.three million tractors, in keeping with the corporate’s personal knowledge.