The Oggun Tractor Plant has officially been approved and should begin operations by 2017. Both the U.S. and the Cuban governments had to approve the idea from two semi-retired software engineers who hail from Alabama. The plant is expected to cost anywhere from $5-10 million and it will be the first large American business investment located in Cuba since 1959.
When Fidel Castro took power, he confiscated quite a bit of corporate and private property from the U.S. which then forced an embargo on Cuba. This prohibition stopped commerce of many different kinds for decades.
The new facility will create durable heavy equipment such as tractors that are easy to maintain. All of the heavy equipment is supposed to sell for less than $10,000. The manufacturing plan shows it may expand in the future to include backhoes, excavators, forklifts and other heavy equipment outside of just tractors. The tractors will be 25-horsepower and easy to use.
Oggun is preparing to put out the schematics of the tractors they will build so people can order them online. This will also make it easier for clients in Cuba and the U.S. to repair equipment that are made from the same basic frames and motors.
Once the company expands after it reaches some basic goals with the tractors, clients will be able to order the other items as well as parts online. The online venture will help cut costs since there will not be overhead sources and they can service clients from all over the area as well as in other regions.
Tractors that are highly durable, versatile and easy to maintain should be easy enough for Oggun to sell. The parts will continue to work through the process so if anything breaks down, it can easily be found for a repair in very little time. The partners involved with the venture even have a plan to improve Cuba’s infrastructure, which they feel has been neglected over the years.