Deere & Company announced plans to invest $50 million to build a construction equipment factory in China for the Chinese market as well as export. The new factory will build four-wheel-drive loaders and excavators. Located in the Tianjin Economic-Technological Development Area (TEDA), the factory will be the company’s sixth manufacturing location in China.
"This new factory will enhance our opportunity to serve Chinese customers as well as customers in other markets," said Samuel R. Allen, chairman and chief executive officer in a statement. "This action represents a meaningful expansion of Deere's construction equipment division in China."
Though Deere is best known for agricultural equipment, it broke into the construction market in 2008 through a joint venture to build excavators. "Deere continues to pursue opportunities to grow around the world," Allen said. "We are pleased that we can add to our manufacturing capabilities to serve China's construction equipment needs as infrastructure improvements continue in the country.”
"This announcement is an example of our strategy to expand the global presence of Deere in the construction equipment industry. Deere believes that we enhance our service to customers when we manufacture products, when possible, in the market where they are sold,” said Mike Mack, president of the Worldwide Construction and Forestry Division for Deere. "Our experience shows that TEDA has been a good place to do business, with excellent support from public officials, availability of a talented workforce, and access to transportation and logistics - all of which are key factors in deciding where to locate a manufacturing operation."
China is a hot factory destination. Caterpillar has opened several factories in the country in the past year alone.
Source: Deere & Company