Deere To Build 8R Tractors in Brazil
Deere & Co. has announced it will invest approximately $40 million to create the capacity for manufacturing its 8R tractors at the company's Montenegro, Brazil factory. Deere builds several models of tractors at the Montenegro facility, but none in the high horsepower range offered by the 8R. Deere said it has been in Brazil since 1979 when it invested in a joint venture in the country. In 2008, Deere announced its decision to construct the Montenegro factory to increase its capacity for tractor production in the country.
Deere currently manufactures 8R tractors in Waterloo, Iowa and will continue to do so for markets around the world. Deere said re-configuration of the Brazil factory will begin in later this year and it expects to be producing 8R models in Brazil by late fall 2015. Deere said the investment in Brazil will also increase the company's use of suppliers in the region.
"Our customers in Brazil are investing in higher horsepower tractors in the range offered by the 8R model," said Mark Von Pentz, president, Worldwide Agriculture & Turf Division. "Our decision to manufacture the 8R in Montenegro should allow the machine to be eligible for FINAME financing – the public program that targets investment in Brazil's economic development.