Deere & Company said today it will invest $70 million to expand the manufacturing capacity in its Waterloo, Iowa operations, where the company builds large farm tractors that are used around the world. Deere has previously reported strong demand for large tractors and said the investments announced today will increase the number of tractors Deere can build in Waterloo by the middle of 2013.
"Through this initiative, we will increase our manufacturing flexibility and speed," said David Everitt, president of the Worldwide Agricultural & Turf Equipment division. "The market demand John Deere has experienced for large agricultural equipment has remained strong for several years. We believe the time is right to invest in our facilities to meet future demand for the large John Deere tractors that help our customers meet the world's growing demand for food."
The $70 million investment will increase capacity by more than 10%. Once the improvements announced today are completed, enhancements to John Deere facilities in Waterloo since 2002 will have increased manufacturing capacity for large tractors by more than 50%.
"The John Deere Waterloo Works are an important part of the company's global manufacturing strategy," Everitt said. "Not only does Waterloo produce whole goods in the form of the large tractors, the operations also manufacture components that are used in John Deere machines built at other facilities."
Tractors built in Waterloo are shipped to more than 130 countries each year and are used by the most productive agricultural producers in North America and around the world. Approximately 6,000 individuals are employed in John Deere's various Waterloo operations. Today's investment is not expected to add manufacturing jobs.
Deere & Company DE -0.10% is a world leader in providing advanced products and services and is committed to the success of customers whose work is linked to the land - those who cultivate, harvest, transform, enrich and build upon the land to meet the world's dramatically increasing need for food, fuel, shelter and infrastructure. Since 1837, John Deere has delivered innovative products of superior quality built on a tradition of integrity. For more information, visit John Deere at its worldwide website at www.JohnDeere.com.