en.Wedoany.com Reported - South Korean agricultural machinery company LS Tractor has launched a new round of expansion in Brazil, having invested 40 million reais since 2024, with plans to invest an additional 20 million reais over the next two years. The funds will be used to expand the tractor product portfolio, modernize infrastructure, update information technology systems, and enhance operational capabilities. Bono Kim has taken over as president of the Brazilian subsidiary, and the company is strengthening Brazil's role in its global structure.
Bono Kim has been with LS Mtron for over two decades, having participated in market expansion in Asia, Europe, Turkey, Australia, and the United States, as well as industrial operations and technology transfer projects. Before taking over the Brazilian operations, he served as Director of Product Management, Sales Strategy, and Business Planning at LS Tractor USA. He stated that Brazil is a long-term strategic base for the company, not a short-term market.
This investment comes amid a recovery in the Brazilian agricultural machinery market. According to data from the Brazilian Machinery Industry Association (Abimaq), the industry's transaction volume in 2025 reached 66.7 billion reais, a year-on-year increase of 7.4%. Machinery sales grew by 13.05%, and wheel tractor sales rose by 13.7% after two consecutive years of decline.
LS Tractor expects its Brazilian business revenue to grow by 50% between 2026 and 2028. Commercial Director Felippe Vieira stated that growth will be supported by product line updates, expansion of the dealer network, adoption of new technologies, and increased market share. He believes that Brazil has become a platform for providing solutions to multiple countries in Latin America and Africa, reinforcing its importance to the group's international expansion.
The new strategy encompasses three directions: updating the product portfolio to develop machines tailored to different farmers; expanding financial solutions to facilitate equipment acquisition; and strengthening the dealer network. Bono Kim stated that the company is building long-term partnerships, enhancing the network's financial stability and promoting sustainable development through dealer support mechanisms and mutual incentive programs.
Plans include launching a new tractor series targeting small and medium-sized farmers, reducing production costs while maintaining the brand's technical standards. Bono Kim reaffirmed the commitment to expanding technology accessibility.
Since establishing the Garuva factory in Santa Catarina, LS Tractor has increased the localization rate of components and has a network of 86 dealers. Tractors produced at this factory are exported to over 20 countries in Latin America and Africa, with some equipment developed based on the needs of Brazilian farmers.
Bono Kim stated that engineering developed based on the needs of Brazilian farmers has become a reference for several international markets, enhancing competitiveness in countries with similar agricultural characteristics. He added that the new investments will be used to strengthen the after-sales structure, parts logistics, and dealer technical training to support the growth of the installed base. He emphasized that the company is building a long-term project, planning for the next 50 years and beyond, and views Brazil as a key market connecting Latin America and Africa.
