Deere & Company will build a new manufacturing facility in northeast China to build mid- and large-sized tractors, sprayers, planters and harvesting equipment. Deere said its initial outlay for the project is approximately $80 million.
Deere has a history in the ag industry in China dating back to the 1970s when the company was involved in the pilot farming project known as Friendship Farms.
The factory will be located in Harbin in the Heilongjiang Province, the same province where the company already operates John Deere Jiamusi Works, a provider of harvesting equipment in China. The new factory will include the manufacturing technologies of metal fabrication, painting, and assembly of product.
Groundbreaking will take place in the third quarter of calendar year 2011 and the factory is expected to begin manufacturing products in late 2012. The facility will be Deere's seventh manufacturing location in China, including two joint ventures, all of which primarily serve the China market.