DULUTH, GA – July 28, 2004 – AGCO Corporation (NYSE:AG), a worldwide designer, manufacturer and distributor of agricultural equipment, announced today that it has entered into a long term agreement with the ARGO Group for the joint development and supply of entry level and mid-range combines. Under the agreement, ARGO's facility in Breganze, Italy, will manufacture Massey Ferguson, Fendt and Challenger combines for AGCO's Europe Africa and Middle East Operations.
Two ranges of combines in each brand will be produced, complementing AGCO's existing ranges which are produced at the Company's Randers Manufacturing Facility in Denmark.
Martin Richenhagen, President and CEO of AGCO Corporation, described this as a very positive step in strengthening the Company's presence in the combine business and an integral part of AGCO's strategy, following the announcement earlier in July that AGCO will focus its Randers manufacturing resources on the assembly of high specification combines.
Mr. Richenhagen said: "AGCO is committed to providing its dealers and distributors in Europe with a full line of equipment which includes a competitive line of combine harvesters. We believe that this action will allow AGCO to improve its position in the European combine market and enable us to focus our investment on future developments for this important region.”
Gary Collar, AGCO's Senior Vice President and General Manager for Europe, Africa and the Middle East, said: “ This is an exciting opportunity for AGCO. It will enable the Company to provide a broader, more competitive range of combine harvesters, particularly recognizing that the market place has diverse needs between the agribusiness and the owner farmer sectors.”
He continued, “The new combines will benefit from both companies' tremendous experience and long heritage in harvesting and will provide outstanding performance and value from their features and specifications. Their design will fit perfectly with AGCO's combine harvester development and customer support strategy.”
AGCO confirmed its intention to launch its new ranges later this Autumn for full availability for the 2005 harvest.
Safe Harbor Statement
The Company's expectations with respect to the ARGO agreement are forward looking statements. Actual results may differ materially from the results reflected in these forward looking statements for a number of reasons, including ARGO's ability to successfully manufacture the equipment, market desires, industry performance, and equipment sales generally.
AGCO Corporation, headquartered in Duluth, Georgia, is a global designer, manufacturer and distributor of agricultural equipment and related replacement parts. AGCO products are distributed in over 140 countries. AGCO offers a full product line including tractors, combines, hay tools, sprayers, forage, tillage equipment and implements through more than 9200 independent dealers and distributors around the world. AGCO products are distributed under the brand names AGCOÒ, Agco AllisÒ, AgcoStarÒ, ChallengerÒ, FarmhandÒ, FendtÒ, FieldstarÒ, GleanerÒ, GlencoeÒ, HesstonÒ, LOR*ALÒ, Massey FergusonÒ, New IdeaÒ, RoGatorÒ, SisuDieselä, Soilteqä, Spra‑CoupeÒ, SunflowerÒ, TerraGatorÒ, TyeÒ, ValtraÒ, Whiteä, and WillmarÒ. AGCO provides retail financing through AGCO Finance in North America and through Agricredit in the United Kingdom, France, Germany, Ireland, and Brazil. In 2003, AGCO had net sales of $3.5 billion.
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