A non-binding framework agreement with a five-year term has been signed between our company and the South Korea-based Daedong Corporation, establishing the principles of cooperation regarding the supply of powertrain systems (engines, transmissions, and axles) to be used in the production of tractors with varying power ratings and specifications.
Within the scope of the framework in question, the procurement of powertrains for use in new-generation tractor platforms under 57 horsepower will be evaluated based on mutual agreement between the parties, market conditions, technical requirements, and definitive supply contracts to be concluded in the future. Therefore, the framework agreement in question does not, in itself, give rise to any specific order, purchase obligation, or revenue guarantee.
In addition to strengthening our Company's product portfolio in the low-horsepower segment with globally competitive technologies, this collaboration will establish a significant foundation for initiatives involving technical knowledge sharing, engineering cooperation, and technology transfer between the two companies.
In this context, while a collaboration with Daedong Corporation is being evaluated for new-generation models in the low-horsepower segment, the Company's own engine and transmission development programs are proceeding without interruption. Engine and transmission systems developed by the Company will continue to be used in our existing product families as well as in the new-generation tractors in the medium- and high-horsepower classes currently under development.
Should the collaboration in question be implemented within the framework of definitive agreements to be concluded between the parties in the future, it is expected to contribute to our Company's product diversity, international competitiveness, production capabilities, and technological competence.
Respectfully announced to our investors and the public.
This English version has been prepared for informational purposes only. In case of any discrepancy between the Turkish and English versions, the Turkish version shall prevail.