US Deere Opens New Factory in Brazil

Deere & Company from Moline, Illinois, said October 13 that it will build a new tractor factory in Brazil ”“ a move that will increase the company’s manufacturing capacity for farm tractors, combines and seeding equipment in the growing South American agricultural equipment market.

Deere will invest $80 million to construct the new facility in Montenegro, Rio Grande do Sul.

“John Deere continues to strengthen its presence in markets across the globe,” said Robert W. Lane, chairman and chief executive officer. “This new factory will enhance our ability to serve customers in the important agricultural markets of South America.”

The new facility will manufacture farm tractors while Deere’s existing factory in Brazil will focus on combines and planting equipment.

The increased capacity enhances Deere’s position in a growing Brazilian agricultural economy, where thousands of acres in the Brazilian plains are being moved into farm production each year.

Deere is a leading producer of combine harvesting equipment in Brazil and also is a leader in sugar cane harvesting equipment. Deere has established a growing presence in the tractor market since first manufacturing tractors in Brazil in 1996.

John Deere equipment manufactured in both the existing facility and the new factory in Brazil will continue to be exported to other markets. Deere said it expects the factory in Brazil to be in full production by the second half of 2006.

John Deere tractors built in the new factory will be manufactured on the company’s global product platform, which allows for efficiency in design and manufacturing costs.

The global product platform is already in place in the company’s seven other tractor factories, which are located in Augusta, Georgia and Waterloo, Iowa in the U.S. and Mannheim, Germany; Pune, India; Horizontina, Brazil; Saltillo, Mexico; and Tianjin, China.

John Deere has maintained a manufacturing presence in Brazil since the company first invested in Schneider Logemann S.A in 1979. Deere later completed the acquisition of Schneider Logemann S.A. in 1999.

John Deere (Deere & Company – NYSE:DE) is the world’s leading manufacturer of agricultural and forestry equipment and a leading manufacturer of equipment used for construction and for lawn, grounds and turf care.

John Deere also manufactures engines used in heavy equipment and the company provides worldwide financial services. Deere was founded in 1837 and now employs 46,000 employees globally.

Press Release

Tags:

You May Also Like

IMF Values Private Investment in Brazil

The Director of the Fiscal Affairs Department of the Monetary International Fund (IMF), Teresa ...

In Brazil-Argentina Trade It’s Goodbye Dollar, Hello Peso and Real

Trade transactions between Brazil and Argentina may be made in Brazilian reais or Argentinean ...

Brazil’s Petrobras Gets US$ 378 Million with Strings Attached

The Brazilian Development Bank (BNDES) approved a US$ 378 million loan to Petrobras Netherlands, ...

Brazil: Cardoso is Catching Lula’s Illiteracy

Former Brazilian President, Fernando Henrique Cardoso, is an educated man and – his Marxist ...

Yankee Samba School

California’s Cheremoya Samba School is both an oddity and pleasant surprise: the Escola de ...

For Brazilians, Vote Buying Scandal Is Just Politics as Usual, Shows Poll

Most Brazilians associate the recent charges and investigations of federal government corruption with the ...

Brazil’s Development Bank Has US$ 45 Bi to Lend. 24% More Than Last Year

Brazil's BNDES (Brazilian National Development Bank) intends to make available 80 billion Brazilian reais ...

Brazil Wants to Become a Power in Software

Brazil’s Minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, affirmed March 9 ...

Brazil Unveils Plan to Fight ‘Global Predatory Competition’

Brazil has just launched the Greater Brazil Plan. Under the slogan “Innovation for Competition. ...

Brazil Looks for Ways to Help Tobacco Farmers

Nearly 95% of the proposals contained in the World Health Organization’s Framework Convention on ...