MOLINE, Ill., Sept. 9, 2013 /PRNewswire/ -- Deere & Company said today it will invest approximately $40 million to create the capacity for manufacturing its popular 8R tractors at the company's Montenegro, Brazil factory – an action that enhances John Deere's ability to serve customers in the important Brazilian market.
"Our customers in Brazil are investing in higher horsepower tractors in the range offered by the 8R model," said Mark Von Pentz, president, Worldwide Agriculture & Turf Division. "Our decision to manufacture the 8R in Montenegro should allow the machine to be eligible for FINAME financing – the public program that targets investment in Brazil's economic development.
John Deere has a long history in Brazil, starting in 1979 when Deere first invested in a joint venture in the country. In 2008, Deere announced its decision to construct the Montenegro factory to increase its capacity for tractor production in the country.
Deere builds several models of tractors at the Montenegro facility but none in the high horsepower range offered by the 8R – a tractor model that is a key component of the farming systems utilized by highly productive farms around the world.
"As we have recently stated, demand for John Deere equipment has remained strong both in North and South America," said Von Pentz. "Our customers are finding productivity gains in using the significant technology designed into the 8R and we want to continue to meet our customer demand as Brazil enhances its position as one of the breadbaskets of the world."
Deere currently manufactures 8R tractors in Waterloo, Iowa and will continue to do so for markets around the world. Deere said re-configuration of the Brazil factory will begin in later this year and it expects to be producing 8R models in Brazil by late fall 2015. Deere said the investment in Brazil will also increase the company's use of suppliers in the region.
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