MOLINE, Ill., Feb. 29 /CNW/ -- Deere & Company today announced it will
expand its presence in the world's largest and fastest growing market for
construction equipment by entering into a joint venture in China.
Deere said it has signed a definitive agreement to own 50 percent of
Xuzhou Xuwa Excavator Machinery Co., Ltd. (XCG) -- a subsidiary of Xuzhou
Bohui Science and Technology Development CO. Ltd. (Bohui). The companies are
seeking review of the transaction by government approval authorities in China.
"Today's action provides Deere with a foundation in this important and
rapidly expanding marketplace with an opportunity to leverage the expertise of
XCG in China," said Samuel R. Allen, president, Worldwide Construction and
Forestry Division. "XCG is a leader in providing quality machines that perform
to high standards for customers, which is a key to enhancing our construction
equipment business in this growing market."
XCG was viewed as a viable partner for the Chinese market because of its
strong domestic position as a leading Chinese manufacturer of construction
equipment with a broad excavator product line of 14 models. Currently XCG is
the third largest domestic excavator manufacturer in China with dealers
covering all but two provinces of the Chinese market.
"Excavators are a vital segment of the construction equipment market,"
Allen said. "XCG is well positioned to provide Deere recognition as a key
provider of construction equipment in China."
While Deere has a long-term presence in the manufacturing of agricultural
equipment in China, this is the company's first manufacturing operation in
construction equipment in the country. Deere's construction and forestry
division is the world's leading producer of equipment for forestry and a
leading provider of a broad range of construction equipment in North America.
Deere also has an important long-standing business relationship with
Hitachi Construction Machinery Co., Ltd. a leading global manufacturer of
excavators. The two companies manage a joint venture in Kernersville, N.C.
producing equipment for the Americas supporting their joint marketing
arrangement. This latest transaction will have no effect on the current
relationship with Hitachi in the Americas. Deere said it remains committed to
this relationship and continues to value its partnership with Hitachi.
Financial terms of the Deere-XCG transaction were not announced.
John Deere (Deere & Company - NYSE: DE) is the world's leading provider
of advanced products and services for agriculture and forestry and a major
provider of advanced products and services for construction, lawn and turf
care, landscaping and irrigation. John Deere also provides financial services
worldwide and manufactures and markets engines used in heavy equipment. Since
it was founded in 1837, the company has extended its heritage of integrity,
quality, commitment and innovation around the globe.
For further information:
For further information: Ken Golden, Director, Strategic Public
Relations of Deere & Company, +1-309-765-5678; Web Site: