Chinese tractor maker Shantuo Agricultural Machinery Equipment has reportedly invested more than $20 million in a production start-up project in Romania.

According to the web site of the Romanian consulate in Boston, Mass., Shantuo’s new Hoyo tractor unit in Rasnov plans to supply the domestic market initially before embarking on long-term plans to export. Shantuo, which was reorganized into a semi-public company 4 years ago, sells tractors in Russia, Africa and Southeast Asia, as well as the U.S. and Canada.

In China, Shantuo tractors are distributed under the TS and KM brands. Its compact models have been sold in the U.S. carrying the Kama name and the new venture’s brand is Hoyo.

A ready supply of employees with necessary skills likely influenced the choice of Rasnov as the location for the Romanian venture since it is within 15 km of Brasov, where Universal tractors were once built. The state-owned enterprise was liquidated 2 years ago and the site sold for development.

Denisa Vasilescu, executive director of the new venture, plans to import parts from China once the assembly facility is complete. Production is scheduled to begin in April of this year with plans to build 3,000-4,000 units a year.