MOLINE, Ill., Aug. 19, 2021 /CNW/ --John Deere (NYSE: DE) today
announced it has agreed with Hitachi Construction Machinery to end
the Deere-Hitachi joint venture manufacturing and marketing
agreements. John Deere and Hitachi will enter into new license and
supply agreements, which will enable John Deere to continue to
source, manufacture, and distribute the current lineup of
Deere-branded excavators in the Americas.
As a result of the new agreements, the following changes will go
into effect on Feb. 28, 2022,
contingent upon regulatory approval.
- John Deere will acquire the Deere-Hitachi joint-venture
factories in Kernersville, NC;
Indaiatuba, Brazil; and
Langley, British Columbia,
Canada.
- John Deere will continue to manufacture Deere-branded
construction and forestry excavators currently produced at the
three Deere-Hitachi factories. These locations will discontinue
production of Hitachi-branded excavators. John Deere will continue
to offer a full portfolio of excavators through a supply agreement
with Hitachi.
- John Deere's marketing arrangement for Hitachi-branded
construction excavators and mining equipment in the Americas will
end; Hitachi will assume distribution and support for these
products.
"For many years, John Deere and Hitachi enjoyed a mutually
successful partnership in the Americas," said John Stone, president, John Deere Construction
& Forestry Division and Power Systems. "As we turn the page to
a new chapter of Deere-designed excavators, we remain committed to
supporting our customers of today and tomorrow."
"Looking to the future, John Deere will build on our legacy of
quality and productivity and accelerate development of
industry-leading technology and machinery that answers the
fundamental need for smarter, safer, and more sustainable
construction so our customers can shape tomorrow's world," Stone
continued.
John Deere and Hitachi began a supply relationship in the early
1960s; then in 1988 the companies started the Deere-Hitachi
manufacturing joint venture to produce excavators in Kernersville, NC. In 1998, Deere-Hitachi
expanded the relationship to include the production of forestry
swing machines at Deere-Hitachi Specialty Products in Langley, BC. In 2001, John Deere and
Hitachi combined their marketing and distribution efforts in the
Americas. In 2011, excavator manufacturing was expanded with the
addition of the Deere-Hitachi Brazil factory in Indaiatuba,
Brazil.
The agreement is subject to the receipt of certain required
regulatory approvals as well as certain other customary closing
conditions.
About John Deere
Deere & Company
(www.JohnDeere.com) is a world leader in providing advanced
products, technology, and services for customers whose work is
revolutionizing agriculture and construction — those who cultivate,
harvest, transform, enrich, and build upon the land to meet the
world's increasing need for food, fuel, shelter, and
infrastructure.
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SOURCE Deere & Company