CNH has followed rival tractor-maker Deere & Co in beefing up its Russian operations, unveiling a distribution and manufacturing tie-up with Kremlin-controlled Kamaz.

The maker of Case and New Holland tractors said that Kamaz, historically a truckmaker, would start manufacturing CNH-branded combines, tractors and farm equipment next year.

The companies would also integrate distribution networks to carry CNH machinery made both in foreign plants and at the Kamaz plant in Naberezhnye Chelny, roughly 500 miles east of Moscow.

The joint venture, of which the details have yet to be agreed, would exploit Kamaz's network of 127 dealers, and CNH's "technological know-how... retail finance and leasing solutions", the groups said in a joint statement.

'Cutting edge'

Sergey Chemezov, general director of Russian inward investment company Rostechnologii, said the deal would allow Kamaz "to use the most advanced manufacturing sciences and provide Russian buyers with cutting-edge machines".

For CNH, chairman Sergio Marchionne said: "This agreement is a strong sign of our long-term commitment to Russia."

Mr Marchionne is also chief executive of Fiat, the Italian carmaker which owns 89% of CNH.

Attractive market? 

The tie-up is Kamaz's second joint venture in a week with foreign machinery giant.

The company, which is 38% owned by the Russian government, on October 1 signed a similar manufacturing and distribution agreement with Daimler for Mercedes-Benz and Setra trucks and buses. Daimler owns 10% of Kamaz.

The CNH deal also comes a little over a month after Deere, the maker of John Deere farm machinery, unveiled $125 plans for a tractor plant near Moscow.

CNH shares closed 2.3% higher at $16.62 in New York.