Some of them, like Rostov Nadezhda, have expressed an interest in purchasing foreign equipment or establishing partner ships with equipment manufacturers for organizing an MTS network in the region. Another potential local partner for U.S. machinery producers is RKM Leasing Center, established by the US-Russia Investment Fund. Mr. Balala, General Director, indicated the hi gh potential and profitability of MTS and service centers and encouraged U.S. exporters to capture this niche through partnerships with local companies. RKM Leasing Center could be a strong partner for U.S. firms due to its highly qualified staff and experience in the local leasing market. The rapidly developing regional food industry requires a variety of different processing equipment.
Food producers prefer to buy imported equipment, mostly from Europe.
Vegetable oil producer Yug Rusi uses French and Belgian equipment. Many different food-processing companies plan to modernize their facilities in the near future. Second-hand and refurbished equipment is especially popular due to the lower prices. In order to compete with European manufacturers U.S. equipment exporters are advised to consider the more flexible pricing and possibility of shipment from European affiliates. Competition In the Rostov region, U.S. farm machinery exporters w ill face competition mainly from the local combine harvester producer Rostselmash.