Deere Will Build its Seventh Plant in China

May 19, 2011
$80-million project will produce large tractors, harvesters in response to regional agricultural demand

Deere & Company will invest about $80 million to build a new factory in China, its seventh manufacturing site in that country. The project will break ground this year and begin manufacturing mid-sized and large tractors, sprays, planters, and harvesters in late 2012.

Moline, Ill.-based Deere is among the world’s largest manufacturers of heavy equipment for agricultural work. The company indicated the new project is a response to increased demand for large agricultural equipment in the region. The estimated investment represents the project’s initial outlay, according to the company.

"The investment we are announcing today builds upon a solid foundation of John Deere working with the people of China toward our mutual success," stated Deere chairman and CEO Samuel R. Allen. The company has been active in China for over 30 years. Two of its current operations are joint ventures with local manufacturers.

The new plant will include metal fabrication, painting, and assembly of the vehicles. It will be at Harbin in Heilongjiang Province, where a John Deere plant is already located and producing harvesting equipment.

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