John Deere to Start New Manufacture in Russia

The Deere & Company Board of Directors approved an investment plan to establish a manufacturing and parts center in Russia. The project will be located near Moscow, in close proximity to the Domodedovo International Airport.

The new site will have the capability to manufacture a broad range of John Deere products, including tractors and harvesting equipment, as well as construction and forestry products. At the same time, Deere will consolidate several depots into one site to improve parts and after-sales service to customers.The new project complements Deere's planned investment in a national operations and training center in the Kaluga region and its existing seeding equipment manufacturing facility in Orenburg.

Samuel R. Allen, President and CEO, said that John Deere's products and solutions can greatly improve agricultural and forestry productivity through the use of advanced technology. Mark von Pentz, President in John Deere's Agriculture and Turf Division, added that Deere's strategic investments reflect a confidence in the potential of the Russian market, the strength of Deere's dedicated dealers and employees, and the support of the Russian national and local authorities, particularly in the Kaluga, Orenburg, and Moscow Oblasts. Von Pentz foresees further expansion in Russia, market conditions and government regulations allowing.

In addition, John Deere is to invest 125 mln USD in construction of facilities for skidder production at the site of Industrial Park Yuzhnye Vrata. As soon as the Ministry of Industry and Trade of the Russian Federation makes the final decision, John Deere will start machinery supply. The expected start-up date will be in QI/2010. The skidders’ lineup has not been revealed.

Informational resources: John Deere