Arbos plots clear path for European growth

The Chinese-owned Lovol Arbos Group used the recent Italian EIMA show to further outline plans to not only grow its share of the European tractor market but also develop the Arbos brand into a full line one. First talked about at Agritechnica a year ago, parent company Lovol Heavy Industry has since acquired the ailing Italian Goldoni tractor business at Migliarina di Carpi, close to Modena. Tractor production resumed earlier this year, and a newly-designed range of dual-branded Goldoni and Arbos specialist tractors were on display at the Italian show. The Carpi factory not only provides a base to make three new ranges of tractors below 100hp, but also more powerful Arbos tractors, and the first 5000 Series (100-130hp) tractors have already left the production line. Powered by 4cyl Kohler 3.4lit Stage IV (SCR + DOC) engines, and available with either a two or three-stage powershift transmission, the first deliveries are expected to start next March. The production goal for 2017 is to make a minimum of 200 units. There is no news yet on when the Deutz-powered 140-200hp 6000 and 220-260hp 7000 Series tractors will go into production, but significant changes will be made to the Goldoni factory layout during the next 12-18 months. The site is also new company HQ for the Lovol Arbos Group. The administrative offices have already been transferred from Bologna, with the R&D centre, and engine, tractor and transmission test facilities to follow. It is full steam ahead at MaterMacc too, and another member of the Lovol Arbos Group. An additional 55,000sq.m. of land was recently acquired close to the current facility at San Vito al Tagliamento to produce a new range of direct, precision and pneumatic drills, cultivators, fertiliser spreaders and sprayers. Combine harvesters are also coming, and the goal is to complete the project in 2-3 years. To support the rapid expansion of the product ranges, staff levels within MaterMacc’s R+D division have been increased from four, when Lovol Arbos took over, to 20. Part of a plan to provide a full range of arable machines, for now all kit is branded in both MaterMacc and Arbos colours. In the future the full line will only be branded as Arbos, but the other brands will not disappear. “We will use them in a strategic way,” said Lovol Arbos Group CEO Andrea Bedosti. Looking ahead, Arbos is on target to achieve a 2016 turnover of around €80-€90 million, and has ambitious plans to grow this figure substantially within the next three years. As an early hint of things to come the aim is to appoint 60 to 70 dealers in Italy – just over one per province. With sales offices in Spain and Italy, the company has already appointed a sales team in the UK. As regards market shares, within three years the company is after a 12-15% share of the specialist Italian tractor sector, and a 5% share of the total Italian market. The medium-term goal is to secure an 8% share of the European market from 22-260hp. Finally, Arbos management confirm that the focus for the next 12 months is on consolidation. However, more acquisitions could follow, is the clear message. “We continue to monitor the market and are ready to seize any opportunity,” said Mr Bedosti.