|
Through the acquisition, Deere will expand the
product line offered to Chinese farmers and
enhance its worldwide capacity to produce low
horsepower tractors. Benye mainly builds
tractors in the 20 to 50 horsepower range while
Deere currently builds tractors in the 60 to 120
horsepower range at its current China joint
venture tractor factory, located in Tianjin.
"Our objective is to distinctly serve those who
work the land," said Robert W. Lane, chairman
and chief executive officer of Deere & Company.
"The acquisition of Benye will allow us to
better serve customers in China with a more
complete product line, as well as to provide
tractors from China to other locations in the
world. This action is an example that John Deere
continues to seek opportunities for global
growth." Deere has provided products and
services to the China agricultural market since
1976 and has manufactured equipment in China
since 1997, when it entered a joint venture to
build combines at a factory at Jiamusi. The
Jiamusi operation is now wholly–owned and the
company also manufactures tractors at a joint
venture, John Deere Tiantuo Co., Ltd. Benye,
which was started in 1955, is the largest
tractor manufacturer in southern China. It has a
new manufacturing facility that covers 200,000
square meters, which includes research and
development, manufacturing, and marketing. While
95 percent of the company's current revenues
come from sales within China, the company has
exported tractors to 70 countries worldwide.
"We do have an ambition to grow both our
domestic and export market in China," said David
Everitt, president of Deere's Agricultural
Division in North America, Australia, Asia, and
for Global Tractor and Implement Sourcing. "Our
decision to acquire Benye provides us an
excellent opportunity to align with a high
quality manufacturer of tractors in a horsepower
range important to our customers."
Additionally, Everitt said, there is a growing
demand for smaller tractors in China because of
the increasing mechanization by rice farmers.
Deere anticipates that farmers with less
powerful equipment will be upgrading to machines
in the 20 to 50 horsepower range built by Benye.
Everitt said Deere expects to leverage Benye's
product range and manufacturing capacity for
sales into other Asian, African, and CIS
markets. Financial details of the expected
acquisition were not made public. However, Deere
did report that it will create a wholly–owned
subsidiary named John Deere Ningbo Agricultural
Machinery Co. Ltd. to manage the business. The
transaction is expected to close later this
year. John Deere (Deere & Company - NYSE: DE)
is the world's leading provider of advanced
products and services for agriculture and
forestry and a major provider of advanced
products and services for construction, lawn and
turf care, landscaping and irrigation. John
Deere also provides financial services worldwide
and manufactures and markets engines used in
heavy equipment. Since it was founded in 1837,
the company has extended its heritage of
integrity, quality, commitment and innovation
around the globe.. |
Home
View Products
