Leading agricultural equipment manufacturer Deer & Company (NYSE: DE) has officially announced its purchase of a large factory in Orenburg, Russia. The Illinois-based company plans to invest approximately $32 million in an aggressive expansion move to drastically increase their production capacity.
The current Orenburg facility is home to the assembly of seeding equipment. John Deere representatives expect the soon-to-be renovated manufacturing space will increase the company’s production by 600 percent. The investment will result in new fabrication, paint and assembly opportunities and will increase the availability of crop care machines such as chisel plows, cultivators, box and no-till box drills, trailed sprayers and rippers.
“Orenburg is an ideal location because of its proximity to customers who do small-grain farming,” explained vice president of John Deere’s Global Crop Care Business, Eric Hansotia. “In addition, Orenburg provides excellent access to skilled workers and a strong educational system,” he continued.
John Deere has a rich history in Russia as it has had a manufacturing presence in the industrial heart of the country for over a century. The Orenburg equipment plant is tactfully located close to agricultural markets in Russia and those in nearby Kazakhstan. It opened its doors in 2005.