Deere & Company is to build a new tractor factory in Brazil – a move that will increase the company’s manufacturing capacity for farm tractors, combines and seeding equipment in the South American agricultural equipment market.
Deere will invest $80 million to construct the new facility in Montenegro, Rio Grande do Sul, which it expects to be in full production by the second half of 2006.
The new facility will manufacture farm tractors while Deere’s existing factory in Brazil will focus on combines and planting equipment.
Tractors built in the new factory will be manufactured on the company’s global product platform, which is already in place in the company’s seven other tractor factories across the globe.
John Deere equipment manufactured in both the existing facility and the new factory in Brazil will continue to be exported to other markets.