Deere board approves additional investment in Russia

Deere & Co.’s board of directors has approved an investment plan to set up a manufacturing and parts center in Russia, which will be located near Moscow.

The site will manufacture a variety of John Deere products, including tractors and harvesting equipment. The company will also consolidate several depots into one site to improve parts and after-sales service to customers.

"Russia will be a major contributor to meeting the world's future needs for food and forestry products," said Samuel Allen, president and CEO. "John Deere's products and solutions can greatly improve agricultural and forestry productivity through the use of advanced technology. Therefore, our investment in this new facility helps Deere prepare to significantly contribute to the Russian government's vision for expanding exports from Russia in these important sectors."

Deere intends to expand the company's presence in Russia in its existing facilities and other locations around the country, said Mark von Pentz, president in John Deere's Agriculture and Turf Division.

John Deere has been doing business in Russia for more than 100 years. The company opened a forestry sales branch in Saint Petersburg in 2002, an agricultural sales branch in Moscow in 2003, a manufacturing facility for seeding equipment in Orenburg in 2005, and added construction equipment sales to the Moscow branch operations in 2009. It also plans to develop an operations and training center in Kaluga.