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Stackyard News Jul 09

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Deere & Company Prepared to Expand Operations in Russia

Deere & Company announced this week that it is prepared to significantly expand its farm, forestry and construction operations in Russia, reinforcing Deere’s long-term commitment to a market in which John Deere has had a presence for nearly 130 years.

John Deere 9030

The Russia-USA Business Forum is being held in conjunction with the summit meetings between Russian President Dmitry Medvedev and US President Barack Obama. Samuel R Allen, president and chief operating officer of Deere & Company, is representing Deere at the Forum and will meet with government officials and reporters in Moscow to emphasize Deere’s commitment to Russia.

“We share the vision that Russia can make a significant and sustainable contribution to help meet the world’s growing demand for food, energy and forest products,” said Allen. "Under the right market access conditions, John Deere anticipates significant investments in Russia. John Deere is working to expand its Russian manufacturing of agricultural equipment by early 2010. Ultimately, with the support of the government of the Russian Federation, Deere could envision a series of significant investments over the next five to seven years in expanded capacity for manufacturing and supporting all types of Deere equipment."

The company already markets a wide range of advanced technology products to the agricultural, forestry and construction sectors. Allen said farmers all across the world, including those in Russia, need advanced technology to enhance their productivity, improve their profitability and contribute more to meeting the growing global demand for food and agricultural products.

During its long presence in Russia, Deere has developed an extensive dealer network across the country for its agricultural and forestry products. The company has a manufacturing operation in Orenburg that provides seeding and tillage equipment to the Russian market and exports to other locations. In addition, John Deere is developing an operations, training and parts centre near Kaluga.

In total, Deere and its independent dealers employ a workforce in Russia of nearly 2000 people, including technicians, engineers and agronomists. The workforce supports farmers, foresters and others who work the land.

“John Deere’s long-term commitment to the Russian market is illustrated by our aspiration to significantly expand operations and investment in the country,” Allen said.

Earlier this year, the company introduced a broad line of construction equipment into Russia despite the global economic downturn. Between now and spring 2010, the company anticipates investing in manufacturing facilities for tractors, construction, forestry and harvesting equipment.

Allen, who will become Deere & Company CEO on August 1, said the company’s investments will help Russia meet its goals of greater productivity in agriculture and forestry and improved infrastructure development.

The investments will also enhance Russian manufacturing and technological capabilities, while aligning with the Russian government’s plans and supporting a long-term presence of John Deere in Russia.

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