The world’s largest manufacturer line of agricultural equipment plans to further broaden its reach. John Deere is expanding its small tractor manufacturing line in southern China. The company plans to acquire the Ningbo Benye Tractor & Automobile Manufacture Co. Ltd., located in Ningbo.
Deere said it has signed a definitive agreement to purchase the Benye business and is seeking final review of the transaction by government approval authorities in China.
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.
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