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Carene Chong2 Dec 2016
NEWS

VIDEO: YTO nabs a slice of the Oz pie

With the recent release of new models and a massive expansion plan in place, Chinese tractor brand YTO is pulling out all the stops to make itself seen and heard in Australia

If you are yet to come across YTO and its tractors, chances are you will soon.

Despite having been sold in Australia for over a decade, the brand remained relatively unknown and hidden among the mass of tractor brands currently flooding the market.

The existing stigma that Chinese-made goods are of sub-par quality certainly did not help the company's cause either.

However, in recent months, YTO is zoning in on the region and has focused all of its attention on expanding its operations in Australia.

A key difference of the corporation compared to other Chinese manufacturers, YTO says, is its ability to develop its own technologies and components for use in its products.

"Since the 1980s, we have utilised technology from overseas in our higher horsepower models but have since started developing our own components for use in our tractors," says YTO International General Manager, Liu Jianguo.

"Even though YTO's production and developmental capabilities are still behind some other tractor manufacturers out there, YTO has been collaborating with a number of R&D organisations around the world to develop new technologies and ways of production in order to narrow the gap."

While certain Chinese or Asian-made brands on the market may appear to be on the shoddy side, YTO insists its products are anything but.

Chinese powerhouse

YTO Group was established in 1955 in Luoyang, China, a city where old meets new. Despite being steeped in history, Luoyang has a flourishing heavy industry, which contributes about 77 per cent to the city's economy.

YTO was known as China's first manufacturer of tractors and heavy equipment and has produced over three million tractors since its inception.

Today, YTO's tractors are sold not only in China but in over 100 countries around the world, including the United States, the UK, Germany, South Africa and Australia.

In addition to tractors, YTO also produces combine harvesters, cross-country trucks, construction equipment and diesel engines.

With five manufacturing bases in China and a transmission production facility in France, YTO now churns out about 120,000 tractors a year for both the Chinese and global markets.

Its offering ranges from 25hp to 220hp, with higher horsepower models up to 400hp currently undergoing testing and development.

Where YTO is not using its own components, the company installs quality and well-known parts such as Cummins engines, Bosch electrics, Luk clutches, Grammer suspension seats and Hella lights, among other high-quality components.

The transmissions are developed in-house in a facility in the French region of Saint-Dizier that YTO bought from McCormick and ARGO tractors in 2011. Back in the 1980s and 1990s, the facility was responsible for producing transmissions for the Case IH and New Holland brands.

YTO's takeover meant the company also inherited the production line and technologies from CNH Global and ARGO.

YTO says it takes pride in keeping manufacturing costs low while maintaining a high level of quality in its products, which translates to significantly lower retail prices compared to many other tractor brands in the global market.

"First of all, the labour cost in China is lower in comparison, so that certainly helped our cause," Liu says.

"Secondly, we keep a very close eye on the company's expenditures. Every year, we would set certain standards and expenditure limits that our purchasing department will have to adhere to.

"If they fail to stick to standards we set, we will take strict action against the departments involved."

He adds YTO also applies strict standards to its suppliers.

"If we find issues with the parts that we have been supplied, we are quick to take action and perhaps put the supplier on a blacklist and never deal with them again," he says.

"We strive to have longstanding and mutually beneficial relationships with all our suppliers."

Tried and tested

YTO claims it has the most advanced tractor production line in China.

In October 2016, Australian distributor Everymach organised for a delegation of YTO Australia staff members and trade journalists to visit Luoyang to witness the production process for themselves.

Production facilities are clean and clutter-free, and the assembly lines systematic and organised. The assembly line has been designed in a way that all sections and staff are accounted for and no issue goes unnoticed.

Each factory staff member is assigned to one particular station and put in charge of assembling one specific part of the tractor such as the cab, tyres or engines. While a seemingly manual process, all functions are computerised so employees will only have to ensure the parts are fitted in the right place and the computer will do the rest.

This ensures utmost precision and uniformity across all products.

Once tractors leave the factory floor, they are put through their paces in several testing facilities to ensure everything is in working order and the units are ready for market.

Quality control is not something YTO takes lightly, the company says.

An OECD-certified independent testing facility in Luoyang, named the China Official Tractor Test And Evaluation Center (COTTEC), tests the tractors' engines, transmissions, axles and more, to assess whether they are up to pre-approved standards. The facility also features special 'heat' and 'cold' rooms to test the tractors' durability in different weather conditions.

While YTO's facilities produce over 100,000 tractors per year, YTO claims no one machine is the same as the other, as the company customises each and every one of its tractors to suit the different destination markets.

For example, units sold into Australia have more advanced engine emissions control, better air-conditioning and cab filter systems, as well as higher clearance for the vegetable industry.

Closer to home

In Australia, the YTO brand is distributed by Everymach. Everymach currently has two distribution bases – one in Melbourne and another in Queensland.

"The response to YTO tractors in Australia has generally been very positive," says Everymach Director, Leo Liu.

"However, we have not invested a lot in the past 10 years to promote the YTO brand in Australia or done enough to expand the dealership network, therefore tractor sales in Australia has not been up to par."

That is all set to change in the next year or two, if YTO has its way.

In the past year, YTO has started kicking its expansion plans into gear by setting up a new servicing facility in Toowoomba, in Queensland.

Meanwhile, Melbourne-based distributor Ausequip moved into new and bigger premises located in the outer Melbourne suburb of Pakenham several months ago.

Plans are also currently in place to build a brand new distribution hub in Melbourne, which YTO says will be ready next year and will serve as the new headquarters for the Australasian region. The hub will carry parts and machinery stock and will provide servicing for customers in Australia and New Zealand.

YTO's tractor offering in Australia currently ranges from 35hp to 220hp. The current flagship model, the 220hp LF2204 with powershift transmission, was released at the Henty Machinery Field Days in September 2016 alongside the 150hp LF1504.

Pricing for the line-up ranges from $19,000 plus GST for the 35hp model with ROPS and 4-in-1 bucket to $142,000 plus GST for the LF2204 with GPS and auto-steer functions.

In addition to tractors, YTO Australia will soon carry a full agricultural range including combine harvesters as well as construction equipment.

While the company's long-term plan is to continuously increase brand awareness and sales in Australia, Everymach says there is nothing more important than providing the best customer support possible.

"We are hoping to provide better customer service and support, and continuously receive feedback from customers for future product improvements," Liu says.

"That is what's important for YTO at the moment, even more so than increasing tractor sales.

"We wish to eventually build sturdy and long-term relationships with all our customers in Australia.

"We believe if we put our customers first, we will do well," Mr Liu adds.

Find out more about YTO's tractors at www.ytotractors.com.au.

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Written byCarene Chong
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