AGCO Power was given the valuable Prize of Tampere region Export Award by Tampere Chamber of Commerce and Tampere Junior Chamber International on 19 November. The award is an acknowledgment of long-term and determined development and manufacturing work of competitive products to the challenging export markets.
Export Award 2018 to AGCO Power
AGCO Power Inc., which is steadily growing on the off-road engine markets, has received the Tampere region Export Award 2018 granted by Tampere Chamber of Commerce and Tampere Junior Chamber International.
Last year AGCO Power’s net sales in Finland was 306 Million Euros. The company exports 75% of its engines outside of Finland and mounted in customer’s end products 95% of the engines end up in export markets. The largest export country is France, followed by Germany, USA, UK, Sweden, Italy and Brazil. Large amount of the engine production goes to AGCO’s factories around the world.
AGCO Power also manufactures gear wheels, with the largest export countries being Brazil and China, and Power Generators exported mainly to Africa.
In addition, AGCO Power’s strong know-how in Research and Development has played a critical role in developing the expertise of its own factories located in different countries.
“We have focused the research and development work in Nokia, even though products are manufactured also in China, Brazil and Argentina. The challenges of engine development are related to the fulfillment of emission requirements, and we want to be even ahead of the regulations. That’s why we keep the research and development work in Finland and responsibility in the Linnavuori factory. We want to ensure, among other things, the electronics and software know-how, and therefore we set up a research center in Tampere University of Technology, says CEO Juha Tervala.
The location of Finland is not ideal for a company that imports components and exports engines.
– You have to do things smarter than competitors in Central Europe. We have increased the degree of automation, we have more than hundred robots at the factory. We increase our productivity every year. We are not the cheapest, but when we compare the engine’s life cycle costs – fuel consumption and the maintenance costs – we are good. Of course, After Sales is important. You may never leave the customer alone.
At present, already 75 % of vehicles manufactured by AGCO are powered with an AGCO Power engine.
– The path is built so that the number will be 90 % in the future or even more. Over the next five years, the target will also be to more than double the exports to third party customers.
In export sales, AGCO Power trusts its own Sales and Marketing.
– In general, we are the main contact to the equipment manufacturer. Only a small number of contacts are handled through representatives.
Translated to English from the original text by Tampere Chamber of Commerce