First Massey Ferguson tractors produced in Algeria
DULUTH, Ga. - Wednesday, December 19th 2012 [ME NewsWire]
(BUSINESS WIRE)-- AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment, held a ceremony yesterday to mark the production of the first Massey Ferguson tractor produced by AGCO’s joint venture in Constantine, Algeria. "Together with our Algerian partners, we are pleased to produce Massey Ferguson tractors locally in Africa. This is a significant step in our long term growth strategy for the African continent,” stated Martin Richenhagen, AGCO’s Chairman, President and Chief Executive Officer. "AGCO is committed to grow its presence within Africa by investing in local manufacturing, distribution infrastructure and new training sites. We have committed to invest US$ 100 million in Africa over the coming years.”
The new joint venture in Algeria for the production of Massey Ferguson branded tractors was established earlier this year. AGCO entered an agreement with two local partners – L’Entreprise Publique Economique de Production de Tracteurs Agricoles (EPE ETRAG Spa) and L’Entreprise Publique Economique de Commercialisation de Matériels Agricoles (EPE PMAT Spa) – to form the Algerian Tractors Company of which AGCO owns 49%. The new joint venture is based in El Khroub, close to Constantine, and produces Massey Ferguson tractors for sale into the domestic Algerian market. The production has recently started and the ceremony was held to mark the occasion of the first Massey Ferguson tractor to leave the factory.
"Africa has tremendous growth potential in the agricultural equipment sector and our mission is to provide agricultural solutions for African farmers,” commented Nuradin Osman, AGCO’s Director for Africa & Middle East. "As Africa’s population is set to rise to two billion by 2050, the need for mechanization and training, service and support for small and medium-scale farmers has never been greater.” AGCO’s technology-driven products will contribute to the modernization of the African agricultural market. "The joint venture with our Algerian partners strengthens AGCO’s base of resources in Africa,” adds Osman. "The local manufacturing footprint will allow AGCO to better serve Algerian customers with high quality products and services and will accelerate the development of AGCO’s business in North Africa.”
With over 50 years of experience in Africa through its Massey Ferguson tractor brand, AGCO already leverages alliances with governments, foreign investors and donors to improve agricultural practices in Africa. AGCO also plans to fund the development of Future Farms and Training Centers throughout Africa that will allow local farmers and dealers to be trained on new farming technology appropriate to their needs.
AGCO, Your Agriculture Company, (NYSE: AGCO), is a global leader focused on the design, manufacture and distribution of agricultural machinery. AGCO supports more productive farming through a full line of tractors, combines, hay tools, sprayers, forage equipment, tillage, implements, grain storage and protein production systems, as well as related replacement parts. AGCO products are sold through four core machinery brands, Challenger®, Fendt®, Massey Ferguson® and Valtra® and are distributed globally through 3,100 independent dealers and distributors in more than 140 countries worldwide. Retail financing is available through AGCO Finance for qualified purchasers. Founded in 1990, AGCO is headquartered in Duluth, GA, USA. In 2011, AGCO had net sales of $8.8 billion.
Safe Harbor Statement
Statements which are not historical facts, including expectations regarding the development and sales of products in this region, are forward-looking and subject to risks that could cause actual results to differ materially from those suggested by the statements. These risks include possible declines in demand for products as a result of weather, demand and other conditions that impact farm income, actions by producers of competitive products, and the general risks attendant to acquisitions. Further information concerning these and other factors is included in AGCO’s filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2011. AGCO disclaims any obligation to update any forward-looking statements except as required by law.
Rebecca Fabian, +1-646-415-8518