Deere Expansion in Brazil
September 09, 2013
Deere and Company is planning a major expansion in Brazil. Today the company announced it will spend 40 million dollars to add production of another line of tractors, the 8-R, at its plant in the city of Montengro.
Spokesman Ken Golden says demand is growing in Brazil for higher horsepower models like the 8-R.
"This is true across the world as far as high production agriculture uses our larger tractors, the 8R, the 9 series, for the real work horse activity that goes on, on high production farming."
The five-year old plant already manufactures three smaller models, the 5,000, 6,000, and 7,000 series.
"Our customers in Brazil can now qualify for what's called FINAME financing - that's the name of a public program that subsidizes interest rates for financing. So until you manufacture the product in Brazil, it does not qualify for that type of financing."
Golden says this expansion in Brazil will not affect production or employment at the Waterloo (iowa) plant where several lines of tractors, including the 8-R, are now being made.
Production of the 8-R in Brazil should begin in two years (2015). John Deere first came to Brazil in 1979, when it invested in a joint venture in the country. In 2008, it announced plans to build its own factory.
(photo courtesy of Deere and Co.)