SAO PAULO, BRAZIL-Moline, IL-based Deere & Co. has announced plans to build two new factories here. The company will build a loader factory on its own, and will partner with Hitachi Construction Machinery Co. Ltd. on another factory to manufacture excavators.
Deere said in a statement that it is investing $124 million in the two properties, with its own plant to be used to manufacture backhoe loaders and four-wheel-drive loaders. Hitachi will spend about $56 million for a total investment of $180 million. The two firms have carried out excavator manufacturing in a joint venture since 1988.
Michael Mack, president of Deere’s Worldwide Construction and Forestry Division, said there are significant opportunities in South America. “Over the long term, Brazil has sustained a positive business environment,” Mack said in the statement. “In addition, the country wants to significantly enhance its infrastructure.” The workforce at both sites could exceed 600 employees.
Construction on the factories is expected to start early next year and begin operations in late 2013. Deere, a $26 billion company last year, already has a presence here serving the agricultural and forestry markets with three manufacturing facilities, a parts distribution center for South America, a bank and a facility for John Deere Water, an irrigation company.
The firm isn’t the only equipment manufacturer trying to capitalize on the growth in Brazil. Peoria-based Caterpillar also is currently building a plant in Piracicaba that will produce backhoe loaders and small wheel loaders.
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