Investment Plans for AGCO Plants in Minnesota, France

Jan. 31, 2010
Program will relocate high-horsepower tractor production to U.S.

AGCO, a manufacturer and distributor of tractors, combines, and a range of other agricultural equipment, has detailed a series of capital investment plans, including manufacturing capacity at Jackson, Minn. “We are continuing to focus on increasing our manufacturing presence in North America, particularly with investments in our Hesston, Kan., and Jackson, Minn., facilities,” according to AGCO chairman, president, and CEO Martin Richenhagen.

First, Duluth, Ga.-based AGCO will relocate manufacturing of its high-horsepower, wheeled tractor assembly from a plant in Beauvais, France, to its Jackson operations. “The expansion of high-horsepower tractor production will include an extension of the assembly line and investments in advanced material-handling systems to efficiently deliver parts and material to the assembly line,” added senior vice president and general manager Robert B. Crain, of AGCO North America.

The existing plant will be expanded by about 75,000-ft2 in preparation for assembling high-horsepower Massey Ferguson 8600 Series and Challenger MT600C Series tractors for the North American market by late 2011.

Crain also said AGCO will build a new visitor center in Jackson to “enhance the experience for our customers and dealers.”

Richenhagen said AGCO plans “substantial investments” in its North American plants in the coming years. The company has not indicated the cost of the investments, though the Minnesota project was reported previously at $50 million. Investment plans for the Hesston, Kan., plant were not announced.

AGCO’s Beauvais, France, plant will be updated this year in order to outfit it for manufacturing new models and to complete a “lean manufacturing” improvement program begun last year.

“These investments will deliver major benefits to both our North American and European manufacturing operations and enhance our ability to meet our customers’ needs,” according to Richenhagen.

AGCO is the second-largest domestic manufacturer of agricultural equipment, with brand names that include Challenger, Fendt, Massey Ferguson, and Valtra.

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