Deere to expand tractor-building facilities in India
Published 22/03/2011 | 11:25
Deere & Company is set to increase its capacity to build agricultural tractors in India with a massive investment to build a new factory there in addition to expanding an existing one.
The firm says it will invest around $100m (€71.6m) in building the new facility and expanding its current factory in Pune, near Mumbai.
While Deere says a location for the new plant has not yet been determined, the company insists that it will build small agricultural tractors both for the Indian market and export markets.
Samuel Allen, chairman and CEO of Deere & Company, said: "John Deere will continue to pursue opportunities to grow in our core businesses of agriculture and construction equipment around the world."
In relation to the Indian investment he added: "We have been successful in growing our tractor market share in India and will continue that success."
Deere says it has had a long history with the Indian agricultural market, selling equipment there as far back as 60 years ago. The current announcement follows on from the firm starting construction of a factory for grain harvesting equipment last September.
Deere also opened a technology and engineering centre in Pune in 2005 and is involved in a joint venture with Ashok-Leyland, from India's commercial vehicle industry, to build construction machinery.
The firm states that John Deere has been the largest exporter of agricultural machinery from India for the past five years, with its India-made tractors now being marketed in 70 countries.