AGCO, the Georgia-based manufacturer and distributor of agricultural equipment, is establishing a joint venture in Algeria to produce Massey Ferguson branded tractors. Its venture partners are L’Enteprise Publique Economique de Commercialisation de Materiels Agricoles and L’Enteprise Publique Economique de Production de Tracteurs Agricoles, which together will hold 51% of the company.
“This new step underlines AGCO’s long-term strategy and commitment to accelerate the development of its business in Africa,” stated Martin Richenhagen, AGCO chairman, president and chief executive officer.
AGCO will own 49% of Algeria Tractors Co. The capitalization of the venture was not announced. The operation is based in Constantine, Algeria, and will produce Massey Ferguson tractors for sale into the local domestic market. Production is expected to begin before the end of 2012.
AGCO supplies farming equipment worldwide, including tractors, combines, hay tools, sprayers, forage equipment, tillage, implements, grain storage, and protein production systems. It also produces a variety of replacement parts for its equipment. Along with the Massey Ferguson brand, AGCO produces the Challenger and Fendt brands of capital equipment.
“Africa has significant potential for growth in the agricultural sector,” according to Hubertus Mühlhäuser, AGCO senior vice president/general manager, Europe, Africa, Middle East. “This joint venture is an important part of AGCO’s growth strategy in Africa. AGCO plans to grow its presence within Africa by investing in manufacturing, distribution infrastructure and new training sites,” explained Hubertus Mühlhäuser, senior vice president/general manager, Europe, Africa, Middle East.
“The establishment of this joint venture strengthens AGCO’s base of resources in Africa,” Richenhagen continued. “We are very pleased to commence this new project with our Algerian partners and to develop our Massey Ferguson brand in Algeria. AGCO is looking forward to Algeria Tractors Company becoming very successful in the development of agricultural mechanization within Algeria.”