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MASSEY-FERGUSON, ISEKI MAY JOINTLY ASSEMBLE FARM TRACTORS IN EUROPE

 CHICAGO, July 9 /PRNewswire/ -- Varity Corp., largest manufacturer of farm tractors in western Europe, has expanded talks with tractor maker Iseki of Japan about the possibility of spinning off its Massey- Ferguson tractor production unit in Coventry, England, into a joint assembly venture with Iseki, according to Stark's News Service, a business newswire.
 Stark's said that when the Varity-Iseki joint farm tractor production venture is completed, it will be the largest of its kind in the European tractor assembly business between firms based in Europe and Japan.
 The business newswire said Massey-Ferguson is the largest maker of farm tractors in Europe. It builds nearly 60,000 units of 30 horsepower to 70 horsepower tractors each year in Britain and 10,000 units of 50 horsepower to 180 horsepower vehicles annually at the complex in France.
 Stark's reported that joint venture talks between the two firms recently advanced beyond completed worldwide design and development of a new generation of diesel powered, 30 horsepower to 60 horsepower, two wheel drive vehicles. The new tractors will replace Massey's 200 Series and 300-Series vehicles sold throughout the world, within two years.
 The business newswire also stated that it obtained confirmation in Europe that the joint venture talks between Varity and Iseki will soon expand to include the design of new production tooling which will be needed to manufacture the new low horsepower farm tractors at Coventry.
 Iseki and Varity apparently have already established an amiable business relationship, the business newswire reported. Several years ago, Iseki acquired Varity's Massey-Ferguson farm tractor distribution unit in Australia. Iseki also continues to supply Varity's Massey- Ferguson unit with small tractors which, in turn, are sold to Allis Gleaner Co. farm tractor dealers in the United States and Canada.
 Early this year, Varity sold Massey-Ferguson's North American farm tractor marketing and distribution assets to Allis Gleaner for $110 million in cash -- or 98 cents on the United States dollar, Stark's said. Allis Gleaner borrowed the cash from ITT Commercial Finance of St. Louis, to fund the acquisition.
 In the Varity-Allis Gleaner accord, Allis Gleaner agreed to continue sourcing Massey-Ferguson nameplate farm tractors in North America for the next 10 years.
 -0- 7/8/93
 /CONTACT: John Stark of Stark's, 312-236-5122/
 (VAT)


CO: Varity Corp.; Iseki ST: Ontario IN: MAC SU: JVN

SM -- NYFNS3 -- 9761 07/09/93 07:31 EDT
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Publication:PR Newswire
Date:Jul 9, 1993
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