Deere Investing $40 Million In Brazilian Plant Expansion
John Deere has announced it will invest $40 million for the expansion of its sugarcane harvester and sprayer manufacturing plant in Catalão city, Goiás state, Brazil. The company said the move is in response to growing demand for the machines and production capacity at the plant will increase 30% by the end of 2015.
The facility will be expanded from 322,917 sq. ft. to 484,375 sq. ft., which will also include the addition of a new automated paint system. The warehouse area will be expanded 75% and the truck logistics park will be improved to enhance the material flow, Deere said. The project is also expected to generate 300 jobs.
Deere recently launched its new 3520 and 3522 sugarcane harvesters into the Brazilian market. The company currently builds two sprayer models in Brazil, 4630 and the 4730.
“John Deere is committed with the development of the agriculture in Brazil,” said Leo Marobin, plant manager at Catalão city. “The expansion is a sign that the Brazilian producers are searching more technology to manufacture the whole year. It’s what we call ‘non-stop agriculture.’”
It’s the fourth investment announced by Deere the last several years, Marobin added. “We had announced an investment of R$60 million (US$26 million) in 2012 for the beginning of sprayer production. So investing in the expansion of the facility means offering better products and services.”