NEW DELHI, Jan. 19, 2011 /PRNewswire/ -- Deere & Company said today that it will increase its capacity to build agricultural tractors in India. Deere said the action will better position the company to pursue the considerable growth projected for the Indian tractor market.
Deere will invest approximately $100 million to build a new factory and also to expand its current tractor facility in Pune. The new factory will build small agricultural tractors sold in India and for export to other countries. A location for the new factory has not yet been determined.
"John Deere will continue to pursue opportunities to grow in our core businesses of agriculture and construction equipment around the world," said Samuel R. Allen, chairman and chief executive officer of Deere & Company. "We have been successful in growing our tractor market share in India and will invest to continue that success."
Today's announcement follows other investments Deere has made in India, including breaking ground in September 2010 to build a factory for grain harvesting equipment and inaugurating a John Deere Water facility in early 2010.
In addition, Deere opened a technology and engineering center in Pune in 2005 and is involved in a joint venture with Ashok-Leyland – a technology leader in India's commercial vehicle industry – to build construction machinery.
Deere has a long history with the Indian agricultural market, including sales of equipment in India approximately 60 years ago. More recently, John Deere created a joint venture in 1997 in India and fully acquired the joint venture in 2009. John Deere India has been the largest exporter of agricultural machinery from India for the past 5 years. John Deere tractors made in India are now sold in 70 countries.
"India will be an important contributor as the world works to meet the growing demand globally for food production. For Deere to maintain and expand its leadership role, we must be active in many economies around the world," said Allen. "Our focus is on customers whose work is linked to the land and we believe that we enhance our ability to serve these customers by manufacturing in or near where they use the products."
Deere & Company (NYSE: DE) is a world leader in providing advanced products and services and is committed to the success of customers whose work is linked to the land - those who cultivate, harvest, transform, enrich and build upon the land to meet the world's dramatically increasing need for food, fuel, shelter and infrastructure. Since 1837, John Deere has delivered innovative products of superior quality built on a tradition of integrity. For more information, visit John Deere at its worldwide website at www.JohnDeere.com.
SOURCE Deere & Company