Deere & Company will invest $90 million in its Waterloo, Iowa, facilities to accommodate increased production of its large, high-horsepower tractors. Deere is expanding capacity to meet increased worldwide demand for the equipment, the company announced on Feb. 28.
"John Deere has experienced strong global customer demand for tractors made in Waterloo that expertly integrate complex electronic and mechanical systems to provide powerful and versatile machines," said David Everitt, president, Agricultural Division -- North America, Australia and Asia and Global Tractor Sourcing. "John Deere customers around the world are reinvesting in farm machinery as they sell commodities at higher prices due to increasing demands for food, especially meat, and increasing global use of biofuels."
The investment will not add floor space to current Deere facilities; rather, it will increase the company's Waterloo capacity to build large, high-horsepower tractors by about 25%. The improvements will be substantially completed by early 2010, the company said. The investment will include additional machine tooling, new manufacturing technology and improved work processes, as well as replacement of the current paint system.
The project announcement follows a multiyear investment by Deere of more than $140 million to modernize and improve efficiencies at its manufacturing facilities in Waterloo, which includes John Deere's largest tractor factory.
