ACE wins contract for setting up tractor plant in Ghana

Haryana-based Action Construction Equipment (ACE) has won a contract from Republic of Ghana for setting up of a plant for manufacturing of tractors, backhoe loaders and agricultural machinery. The contract is worth Rs 200 crore. 

The manufacturing unit is expected to be operational by 2024 with installed capacity of 4,500 tractors, 600 backhoes, 600 agricultural equipment and 300 tipping trailers annually, according to company. 

While the project will be owned and operated by Government of Ghana, the initial investment for the project will come from a credit agreement between the government of Ghana and the export import Bank of India.

The project involves designing, engineering, commissioning of assembly supply lines and supply of plant and machinery for the manufacturing in addition to transferring the technical know-how, establishing best in class manufacturing processes and quality control system, along with the training of engineers and technicians from the Republic of Ghana for future operations.

From 2025 onwards the plant is expected to reach a turnover between Rs 150-400 crore.

The Republic of Ghana is primarily dependent upon agriculture and mining, hardly has any manufacturing industry of its own. As a result, the country is dependent on expensive imports from western countries.

With the government now pushing to set up its own domestic manufacturing industry across various sectors, there has been demand for setting up of tractor and construction equipment manufacturing.

Besides serving the domestic needs, there’s good potential for exports to neighbouring countries. 

ACE has eight manufacturing plants and an R&D centre in Faridabad dedicated to construction equipment, road construction equipment, earth moving machineries and agricultural equipment.