04/04/08
Deere & Company today announced plans to significantly expand
its presence in Russia, one of the most important growth markets
for the company in both agriculture and forestry.
Deere said it has signed an agreement with the Russian government
and local authorities to invest approximately $80 million in a
central operations centre which includes a distribution, replacement
parts and training facility in the Kaluga region, 38 miles southwest
of Moscow.
“We believe this is one of the largest single investment
projects of a non-Russian farm and forestry equipment manufacturer
in Russia,” said Robert W Lane, Deere & Company chairman
and chief executive officer. “Our strategic investment reflects
Deere’s confidence in the Russian and other Commonwealth
of Independent States (CIS) markets. It also recognises the commitment
of our dedicated Russian employees and the support of the Russian
government and local authorities.”
In its initial stage, the
new 98-acre facility in the Kaluga region will accommodate a 322,000
square foot replacement parts distribution centre, a training facility
for dealer personnel, including a product demonstration site, and
a wholegoods distribution facility.
“The site will leave room for further expansion potential
as our business in Russia continues to grow,” said Mark von Pentz, president
of Deere’s
agriculture division for Europe, Africa and South America. “This new centre,
which will be operational in 2010, marks a growing commitment to this important
region. As an interim step for further investments, it also contains a provision
for local assembly and manufacturing at a later stage.”
John Deere has a
long history of agricultural and forestry equipment sales to Russia.
In the late 1920s, the company sold a significant number of ploughs
and its famous Waterloo Boy tractors in Russia. The forestry markets
have been served in Russia for over 30 years.
In 2002 Deere opened a forestry sales branch in Saint
Petersburg. In 2003, the company established an agricultural sales
branch office in Moscow, which currently supervises a network of
13 dealers in Russia’s
most important agricultural regions.
“In 2005, Deere added a manufacturing and assembly facility for
seeding equipment in Orenburg,” added Stefan von Stegmann, vice president
of sales and marketing for Deere in the CIS, Central Europe, Africa and Middle
East. “This
new facility in Kaluga will add significant value for our customers. It will
enhance our spare parts supply, provide upgraded training facilities and appropriately
reflect our commitment to this important market.”
John Deere (Deere & Company
- NYSE:DE) is the world’s leading provider
of advanced products and services for agriculture and forestry and a major provider
of advanced products and services for construction, lawn and turf care, landscaping
and irrigation. John Deere also provides financial services worldwide and manufactures
and markets engines used in heavy equipment. Since it was founded in 1837, the
company has extended its heritage of integrity, quality, commitment and innovation
around the globe.
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