AGCO Buys Chinese Combine Manufacturer
AGCO said it has agreed to acquire an 80% equity interest in Shandong Dafeng Machinery Co., Ltd. in China. Dafeng Machinery produces a range of corn, grain, rice and soybean harvesting machines for domestic markets. The transaction is expected to close later in the year subject to various closing conditions and regulatory approvals.
AGCO said it is planning to introduce high horsepower products and advanced technology into the current product offering of Dafeng.
“This is a very important step in delivering our global harvesting strategy,” explained Martin Richenhagen, AGCO Chairman, president and chief executive officer. “In combination with the recent investments in our combine operations in Brazil and the United States as well as the acquisition of the remaining 50% interest in the Laverda combine business in Italy, we hope to achieve an annual combine production volume in excess of 10,000 units globally.”
“The Chinese agriculture market is a big opportunity,” stated Hubertus M. Mühlhäuser, senior vice president, strategy & integration and general manager, Eastern Europe & Asia. “As a critical step of AGCO’s China strategy, the acquisition of Dafeng Machinery will bring significant complementary benefits and substantial value to AGCO’s harvesting offering, with an existing production and supplier base for combines as well as an established distribution network.”