Earlier today, Deere & Company (DE) announced that its Board of Directors has approved an investment plan for setting up a manufacturing and parts center near Moscow.
The company said that the new plant will have the capability to manufacture a broad range of John Deere products, including tractors and harvesting equipment, as well as construction and forestry products. The financial terms were not disclosed.
Earlier in July, during the Russia-USA Business Forum, Deere had announced its plans to expand its farm, forestry and construction operations in Russia. The new plant is the first step in this direction.
The company has an extensive dealer network across the country for its agricultural and forestry products. Despite current economic conditions, the company has introduced a broad line of its construction equipment into Russia earlier this year.
The company said that the new facility complements its planned investment in a national operations and training center in the Kaluga region and its existing seeding equipment manufacturing facility in Orenburg.
Deere considers Russia an important growth market for agriculture, forestry and construction equipment. The company said that it will make significant investments over the next five to seven years to expand its capacity for manufacturing and supporting all types of Deere equipment. Despite a cautious near-term outlook of the Russian economy, we believe the company’s expansion into the country will pay off in the long-term.
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