Deere Investing to Increase Hydraulic Cylinder Output

June 5, 2012
$47 million will add, improve machine tools; no new hires

Deere & Company has outlined a $47-million capital investment program to expand manufacturing capacity in its Moline, Ill., cylinder operations. The producer and distributor of numerous machines and equipment for agriculture, construction, and forestry produces hydraulic cylinders for use in its own products.

Like other manufacturers of off-road machines and agriculture equipment, Deere is engaged in plant expansions around the world, including in Brazil, China, India, and Russia — though it also is expanding tractor production at its operation in Davenport, Iowa, too. The need to increase production of hydraulic cylinders is in line with its plans to increase production for various product lines.

Deere’s Cylinder Division designs and produces hydraulic cylinders for products in the Agriculture and Turf and Construction & Forestry Divisions and OEM markets.

"John Deere's continued global growth requires the company to invest in our manufacturing operations," stated Mark Von Pentz, president of Deere's Worldwide Agriculture & Turf Division. "Market demand has remained strong for John Deere products and this initiative improves our capability to meet that market demand by improving our manufacturing of hydraulic cylinders, which are a key component in heavy equipment."

The investment will mainly cover the cost of upgrading machine tools at the cylinder manufacturing operations in Moline. There will be no new construction, Deere said, and no new employment as a consequence of the investment.

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