Deere & Co. to build construction equipment factory in China

The new Deere construction equipment facility represents an investment of approximately $50 million.

Deere & Company says that it plans to build a new factory in China to manufacture construction equipment for sale in China and for export to other markets. The facility represents an investment of approximately $50 million.

The new factory will produce four-wheel-drive loaders and excavators and will be located in the Tianjin Economic-Technological Development Area (TEDA). The facility will be Deere's sixth manufacturing location in China, two of which are joint ventures.

"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. "This action represents a meaningful expansion of Deere's construction equipment division in China."

China is considered the world's largest and fastest growing market for construction equipment. Allen said that Deere's commitment to doing business in China dates back more than 30 years. John Deere's long history in the country was mainly in the agricultural equipment sector until 2008, when Deere invested in a construction equipment 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."

Mike Mack, president of Deere's Worldwide Construction and Forestry Division, said, "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."

Mack said the location of the new facility in TEDA is close to an existing John Deere factory that manufactures tractor components. "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," he said.