DULUTH, GA – November 25, 2009 – AGCO, Your Agriculture Company, (NYSE: AGCO), a worldwide manufacturer and distributor of agricultural equipment, announced today in Beijing that it will open two manufacturing sites in China. "China is one of the world’s largest farm equipment markets and offers tremendous growth opportunities for AGCO,” said Hubertus Mühlhäuser, Senior Vice President, Strategy & Integration and General Manager, Eastern Europe & Asia. “AGCO is committed to growing its domestic presence within China by opening two local manufacturing sites.”
The Chinese agricultural sector offers a large and growing market for low and mid horsepower tractors. Farm consolidation and government policies are driving the growth in high horsepower tractors and combines. The first site will be in Changzhou China (Jiangsu province) and is expected to open in the first half of 2010. AGCO intends to produce low and mid horsepower tractors, transmissions, engines and gensets for the Chinese agricultural market and for export purposes.
The second site, which is expected to be operational in 2010, will be located in Heilongjiang, China’s largest agricultural area. This manufacturing site will focus on high horsepower tractors, combines and balers.
“AGCO’s plans foresee future investments in our China operations approaching $100 million,” explained Mr. Mühlhäuser. “AGCO’s technology driven products will contribute to the modernization of the Chinese agricultural market, and the local presence will allow AGCO to better serve Chinese customers with high quality products and services.”
AGCO has recently been awarded a contract in a competitive bid for tractors by the Heilongjiang provincial government in China. This program is aimed at expanding agricultural technology and productivity in the local Chinese market. AGCO will deliver over 300 Valtra tractors to the province by the end of 2009. These units will help meet the needs of the Heilongjiang province for advanced agricultural technologies.
AGCO has been a market leader in China for imported tractors for 7 years. Over the past decade it has assembled a strong local after-sales service and spare parts capability serving the needs of local end users in various regions.
AGCO, Your Agriculture Company, (NYSE: AGCO) was founded in 1990 and offers a full product line of tractors, combines, hay tools, sprayers, forage, tillage equipment, implements, and related replacement parts. AGCO agricultural products are sold under the core brands of Challenger®, Fendt®, Massey Ferguson® and Valtra®, and are distributed globally through more than 2,800 independent dealers and distributors, in more than 140 countries worldwide. AGCO provides retail financing through AGCO Finance. AGCO is headquartered in Duluth, Georgia, USA. In 2008, AGCO had net sales of $8.4 billion. Please visit our website at www.AGCOcorp.com.
Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of AGCO Corporation to be different from those expressed or implied in the forward-looking statements. In this context, words such as "will," "likely," "offers" or other similar words and phrases often identify forward-looking statements made on behalf of AGCO. These forward-looking statements involve a number of risks and uncertainties. It is important to note that actual results of the company may differ materially from those described or implied in such forward-looking statements. Further information concerning these and other factors is included in AGCO’s filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2008. AGCO disclaims any obligation to update any forward-looking statements.
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