AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, today announced that it has agreed to establish a new joint venture in Algeria for the production of Massey Ferguson branded tractors. Under the shareholders agreement entered into with L’Enteprise Publique Economique de Commercialisation de Materiels Agricoles and L’Enteprise Publique Economique de Production de Tracteurs Agricoles, AGCO will take 49% ownership of Algeria Tractors Company. The new joint venture is based in Constantine, Algeria and will produce Massey Ferguson tractors for sale into the local domestic Algerian market. Production is expected to begin before the end of 2012.
“This new step underlines AGCO’s long-term strategy and commitment to accelerate the development of its business in Africa,” stated Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer. “The establishment of this joint venture strengthens AGCO’s base of resources in Africa. We are very pleased to commence this new project with our Algerian partners and to develop our Massey Ferguson brand in Algeria. AGCO is looking forward to Algeria Tractors Company becoming very successful in the development of agricultural mechanization within Algeria.”
“Africa has significant potential for growth in the agricultural sector. This joint venture is an important part of AGCO’s growth strategy in Africa. AGCO plans to grow its presence within Africa by investing in manufacturing, distribution infrastructure and new training sites,” explained Hubertus Mühlhäuser, Senior Vice President, General Manager, Europe, Africa, Middle East.