The Department of Treasury has approved the first U.S. factory in Cuba since the 1959 revolution, the Associated Press reports. Cleber LLC, an Alabama-based company led by Chief Executive Officer Horace Clemmons and co-founder Saul Berenthal, will start the production of small tractors in Cuba by 2017.

Cleber LLC

According to the company's official website, Cleber is an agricultural and light construction equipment manufacturer from Paint Rock, Alabama that uses Open System Manufacturing Model (OSMM) on its designs. It is described as a simple and efficient way to produce self-sustainable equipment leading to the creation of "Oggun," the very first tractor designed using OSMM.

"We are proud to take the next step forward in continuing to develop the Cuban economy and providing a means for farmers to directly benefit from their efforts. We appreciate the partnership shown by the governments of both countries in helping to progress this initiative," Clemmons said.

Berenthal added that their company started to manufacture small tractors because more than 70 percent of land in Cuba were returned to the private sector for the benefit of farmers. Agriculture has been an important part of Cuba's economy, which is composed of family farmers and cooperative farms. These farmers demand cheap but sustainable and efficient equipment that increases productivity.

First U.S. Investment in Cuba Since 1959

The Associated Press reports that the plant will cost from $5 million to $10 million. It's the first U.S. business investment in Cuba in 57 years. Cleber will start their production sometime in the first quarter of 2017.

The planned factory will be built at the special economic zone in Mariel, which has been specifically established to persuade international investors. Clemmons and Berenthal noted that Cuban officials have publicly endorsed their partnership prior to the approval of the U.S. government.

In a report by USA Today, the Cleber co-founders said that Cuba wants to do more production rather than importation. They added that their company will teach Cuban workers management skills on top of sure employment and introduction to new technology.

The plant is expected to produce about 1,000 small tractors or "Ogguns" every year and will be sold in Cuba and other Latin American countries. Berenthal said that the price of their 25-horsepower tractor will be under $10,000 per unit so that small farmers from South America will be able to afford it.

The outlet noted that this was all possible after the restoration of full diplomatic relations between U.S. President Barack Obama and Cuban leader Raul Castro back on Dec. 17, 2014.

.