AGCO, manufacturing, China,--AGCO To Open Another Chinese Manufacturing Plant

AGCO has announced it will open a manufacturing operation in Daqing, Heilongjiang, China. The Daqing site will produce the company's Chinese high horsepower tractors and Class 4 and higher combine production.

“China is one of the world's largest farm equipment markets and offers tremendous growth opportunities for AGCO,” said Hubertus Mühlhäuser, senior vice president, Strategy & Integration and General Manager Eastern Europe & Asia at AGCO. “The opening of our third manufacturing operation in China marks an important step in the implementation of our Asian growth strategy. The site adds to AGCO's Chinese manufacturing strategy consisting of gen-set operations in Shanghai as well as planned engine and low-to-mid horsepower tractor production in Changzhou.”

Additional production in the region is necessary as AGCO has recently been awarded major contracts in a series of competitive bids for tractors by the Heilongjiang provincial government in China. These are part of a program aimed at expanding agricultural technology and productivity in the Chinese market. By the end of 2010, AGCO said it will have delivered more than a thousand Valtra high horsepower tractors to the province. The units will support the province of Heilongjiang in its plan to further advance local farming practices and productivity.

“Heilongjiang is one of the most important agricultural regions in China,” said Mühlhäuser. “The large size of the region's farms and agricultural practices make it an ideal location for AGCO's higher horsepower tractor and large combine operations. We will increase production capacity and degree of localization over the next years in line with market demand. Our plans foresee this site to become a key production hub for the region.”

Source: Diesel Progress Online