John Deere and Co. is moving forward with what will be its sixth facility in China, a $50 million plant that will manufacture construction equipment, according to the Quad-City Times of Iowa.
The new facility, which primarily will assemble four-wheel-drive loaders and excavators, will be constructed in the Tianjin Economic-Technological Development area. Two of the six Deere facilities in China are joint ventures. Deere already operates agriculture plants in the country.
"This new factory will enhance our opportunity to serve Chinese customers as well as customers in other markets," Samuel R. Allen, Deere chairman and chief executive officer, said in a news release. "This action represents a meaningful expansion of Deere's construction equipment division in China."
Deere Spokesman Ken Golden said the Chinese economy is rapidly developing. So too are infrastructure projects and the construction of new buildings, he said. He also noted China's construction equipment market is presently the globe's largest.
"This will be our first wholly owned factory for construction equipment in China," Golden said. "We currently have a joint venture in construction equipment in China."
Deere to open sixth facility in China
Deere & Co announced plans to open a plant in China, where it already has a portfolio of interests.