Deere & Company Breaks Ground on New Tractor Factory in India

Deere & Company officials broke ground today on the company's second tractor factory in India, announcing the facility will be constructed in Dewas, which is located northeast of Indore, the largest city in the state of Madhya Pradesh.

Also this week, Deere inaugurated John Deere's first factory in India that will build combines for harvesting. Construction of the factory began in October 2010 and full production is expected to begin later this month at the factory located in Sirhind, which is west of Chandigarh.

The new tractor factory in Dewas will build small agricultural tractors sold in India and for export to other nearby markets. In early 2011, Deere originally announced plans to expand its manufacturing capacity in India with the construction of the new tractor facility but had not announced the location until today's ceremony.

"John Deere products have been well accepted by customers in India and our investment in this new factory is a direct result of that success," said Samuel R. Allen, chairman and chief executive officer of Deere & Company. "John Deere is committed to helping customers in India and around the world to increase their productivity and to prosper."

Deere is investing $80 million to build the factory in Dewas and could eventually add as many as 1,000 employees at that location. Officials said the new factory also enhances opportunities for ancillary industries to develop as suppliers.