Daedong has signed a 40 billion won tractor powertrain supply contract with Tümosan, a leading Turkish agricultural machinery company, the company said Friday.
The contract marks Daedong's first case of supplying an integrated powertrain solution combining an engine, transmission and axle to an overseas tractor manufacturer, drawing on its tractor development and production capabilities. The deal expands Daedong's overseas business, previously centered on finished products, into the supply of core parts and modules, while securing a reference for its global parts business.
The powertrains Daedong will supply comprise three models: 45 horsepower, 50 horsepower and 57 horsepower. The powertrain is a tractor's core drive system that transfers power generated by the engine to the wheels. Daedong plans to ship samples early this month, conduct on-site performance verification, and begin mass-production supply from early 2027.
The contract resulted from Daedong's preemptive response to changes in European environmental regulations. As Türkiye introduced the European emissions standard "EU Stage 5" from 2022, certification demand among local agricultural machinery manufacturers grew. Tümosan pursued securing a powertrain solution that meets the regulations, and Daedong clinched the contract by proposing an integrated solution including a Stage 5-certified engine, transmission and axle.
Tümosan is a leading local manufacturer that maintains a top-tier market share in Türkiye's tractor market, where global agricultural machinery companies compete. Using the contract as a springboard, Daedong plans to strengthen synergy between its finished agricultural machinery and core parts businesses in Türkiye, and to develop the country as a strategic base for its global parts business to bolster its push into the European, Middle Eastern and African markets.
"This supply is an achievement that recognizes Daedong's integrated powertrain capabilities spanning transmission and axle, as well as its engine technology, in the global market," said Kang Deok-woong, head of Daedong's European subsidiary. "We will expand strategic cooperation with major overseas agricultural machinery manufacturers based on the product competitiveness we have built by preemptively responding to changes in the global market, such as European environmental regulations."
