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DougG 
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 Topic: Agco,s Chinese future
Posted: 27 Apr 2011 at 6:16pm |
Can you imagine a Gleaner put together in China ? Give it time bet it happens
| AGCO Develops Combine Business in China with Acquisition of Shandong Dafeng Machinery Co., Ltd. |
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SHANDONG, China, Apr 27, 2011 (BUSINESS WIRE) --
AGCO, Your Agriculture Company (NYSE: AGCO), a worldwide manufacturer and distributor of agricultural equipment, today announced it has agreed to acquire an 80% equity interest in Shandong Dafeng Machinery Co., Ltd. (Dafeng Machinery) in China. Dafeng Machinery was established in 1995 and currently produces a complete range of corn, grain, rice and soybean harvesting machines for domestic markets. The transaction is expected to close later in the year subject to various closing conditions and regulatory approvals.
During the past 10 years, China's combine market has experienced growth due to large advances in agriculture mechanization and government support. AGCO is aiming to become a future market leader in the Chinese combine sector by introducing high horsepower products and advanced technology into the current product offering of Dafeng Machinery, with a clear focus on meeting new customer demands. This ambition of industry leadership is built upon a strategy focused on key areas of products, operations and distribution.
"This is a very important step in delivering our global harvesting strategy," explained Martin Richenhagen, AGCO Chairman, President and Chief Executive Officer. "In combination with the recent investments in our combine operations in Brazil and the United States as well as the acquisition of the remaining 50% interest in the Laverda combine business in Italy, we hope to achieve an annual combine production volume in excess of 10,000 units globally."
"The Chinese agriculture market is a big opportunity," stated Hubertus M. Mühlhäuser, Senior Vice President, Strategy & Integration and General Manager, Eastern Europe & Asia. "As a critical step of AGCO's China strategy, the acquisition of Dafeng Machinery will bring significant complementary benefits and substantial value to AGCO's harvesting offering, with an existing production and supplier base for combines as well as an established distribution network."
"The acquisition marks an important step in AGCO's China strategy. Significant synergies are expected in both domestic as well as global operations with exports planned to Asia, Far East and African markets," said Andreas Weishaar, Vice President |
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Orange Blood
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Posted: 27 Apr 2011 at 6:23pm |
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I wonder if the goof, realizes that the very letters A G C O stand for the names of the two lines of equipment he is trying to kill, or has already killed. I am sure he doesn't know. Look for a name change soon. Once Gleaner is dead, the correct name will need to be SEMIC, standing for "S#!t Equipment Made in China!"
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Still in use:
HD7 WC C CA WD 2-WD45 WD45LP WD45D D14 3-D17 D17LP 2-D19D D19LP 190XTD 190XTLP 720 D21 220 7020 7030 7040 7045 3-7060
Projects: 3-U UC 2-G 2-B 2-C CA 7-WC RC WDLP WF D14 D21 210 7045 N7
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jtheise4
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Posted: 27 Apr 2011 at 6:25pm |
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Its highly unlikely that AGCO will be importing large equipment like combines to the US from China. They are just too large and don't transport well. Think what you will, but this is a wise business move. China has over a billion people who need to eat. Why wouldn't AGCO want to start selling tractors and combines in China? Like it or not, China is a growing economic power that we are going to have to deal with.
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DougG
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Posted: 27 Apr 2011 at 6:27pm |
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Very true , but componets can be manufactured and shipped easy ;
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Orange Blood
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Posted: 27 Apr 2011 at 6:34pm |
 jtheise4 wrote:
Its highly unlikely that AGCO will be importing large equipment like combines to the US from China. They are just too large and don't transport well. Think what you will, but this is a wise business move. China has over a billion people who need to eat. Why wouldn't AGCO want to start selling tractors and combines in China? Like it or not, China is a growing economic power that we are going to have to deal with. |
To clarify,
I have no problems with companies making money off China, or any other Asian market, or even moving manufacturing over there. I am just tired of this idiot forgetting the roots of the very company that is making him money. It was after all Allis chalmers Gleaner COmpany. So just change the name and get it over with already.
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Still in use:
HD7 WC C CA WD 2-WD45 WD45LP WD45D D14 3-D17 D17LP 2-D19D D19LP 190XTD 190XTLP 720 D21 220 7020 7030 7040 7045 3-7060
Projects: 3-U UC 2-G 2-B 2-C CA 7-WC RC WDLP WF D14 D21 210 7045 N7
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CTuckerNWIL
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Posted: 27 Apr 2011 at 7:43pm |
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So how many different combines will AGCO I mean Massey be producing now?
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JohnCO
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Posted: 29 Apr 2011 at 12:22am |
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A few months ago we were discussing how to get new, small combines here in NA. Well, here's our chance to buy a small, brand new Gleaner. OR NOT!
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"If at first you don't succeed, get a bigger hammer"
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Dale-OH
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Posted: 29 Apr 2011 at 7:40am |
Did I miss something in this article? I didnt see where they would be available to US market? What I read was
"The acquisition marks an important step in AGCO's China strategy. Significant synergies are expected in both domestic as well as global operations with exports planned to Asia, Far East and African markets," said Andreas Weishaar, Vice President
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BIG MIKE
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Posted: 29 Apr 2011 at 9:44am |
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Did you catch the China goverment support part.Seem like all our goverment supports is send jobs over seas and support a deficet.
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Coke-in-MN
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Posted: 29 Apr 2011 at 10:31am |
Most chinese companies are owned by the government is away that say a company producing home electronics, next door in other part of facilities , produces rocket guidance systems for export and another line of production is for domestic defense contracting.
The same ownership but different company face is owned by elete members of chinese military and political families. All that money going there does little for the people of china but a lot for the communist party heads
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Faith isn't a jump in the dark. It is a walk in the light. Faith is not guessing; it is knowing something.
"Challenges are what make life interesting; overcoming them is what makes life meaningful."
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Spud
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Posted: 29 Apr 2011 at 7:46pm |
All major equipment companies are setting up or already have operations in China. It only stands to reason. No harm in that.
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Byron WC in SW Wi
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Posted: 29 Apr 2011 at 10:02pm |
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China is going to bite everyone in the behind...good for AGCO.
The only thing AGCO has excelled at is buying other companies below their value and making money off them by getting their value out of them. They are good business people but bad farm people. I just hope they don't buy New Holland.
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DMiller
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Posted: 30 Apr 2011 at 8:31am |
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I took a look at Shangdong's web site, they are primitive as to equipment, two row corn picker, the combines you could put on a small two axle trailer here, not much as to size and who knows as to quality. They appear to be where the US was in the 30's/40's other than putting cabs on their machines.
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AllisChalmers37
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Posted: 30 Apr 2011 at 1:34pm |
Byron WC in SW Wi wrote:
I just hope they don't buy New Holland.
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I agree, If AGCO bought CNH they would screw that up too. Thus, everyone but John Deere and Kubota owners would be in deep s**t!
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1937 WC, 1950 CA, 1959 D14, 1967 190XT, 2006 Ram 3500
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ky wonder
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Posted: 30 Apr 2011 at 6:12pm |
Spud wrote:
All major equipment companies are setting up or already have operations in China. It only stands to reason.
No harm in that. |
there is a harm in that!!
that most people fail to realize,
not only do our taxes pay for our military they also have paid to upgrade theirs
the interest we pay as a nation to china each year on our debt, is equal to there annual military budjet,
that is why they have enough money to udgrade there infastructure, and build up there military, and the us does not.
the us tax payer is paying for there udgrades, and we are at a point where we cant keep our own infastructure up to par!
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i like old tractors of all colors
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jtheise4
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Posted: 30 Apr 2011 at 6:51pm |
AllisChalmers37 wrote:
Byron WC in SW Wi wrote:
I just hope they don't buy New Holland.
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I agree, If AGCO bought CNH they would screw that up too. Thus, everyone but John Deere and Kubota owners would be in deep s**t!
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I know there is a lot of bad blood regarding Massey Ferguson, but their new tractors are very well built. I have a MF 1643 and its an incredible tractor. Build quality is top notch. I looked at JD and Kubota before buying and neither of them could touch the MF.
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Spud
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Posted: 30 Apr 2011 at 6:55pm |
KY Wonder. So Agco is financing anti-Americanism now? I think the problem is that the US is borrowing, not that China is lending. If you don't want to send them money, get your spending under control. That means stop spending money on foolish programs like ethanol.
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TMiller/NC
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Posted: 30 Apr 2011 at 7:18pm |
Have seen something similar with the furniture industry, where we gave them our technology as we imported the hard to make parts, first thing we as furniture employees knew, they were building the complete piece of furniture and exporting it to the US. The executives in control of these companies need to stop thinking of their wallet and think of what is good for the company and its employees. This is why so many people in the US are with out jobs, hence the lack of taxes being paid, hence the budget woes. Tim
Don't give them any technology, maybe they will have to concentrate of growing food instead of building up the military.
Edited by TMiller/NC - 30 Apr 2011 at 7:22pm
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ky wonder
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Posted: 30 Apr 2011 at 8:00pm |
Spud wrote:
KY Wonder. So Agco is financing anti-Americanism now?
I think the problem is that the US is borrowing, not that China is lending. If you don't want to send them money, get your spending under control.
That means stop spending money on foolish programs like ethanol. |
i think that our goverment has forgotten the old farm addage, (good fences make good neibors) as far as agco is concerned they only look at our country as a profit center, they have killed many great us brands as they have grown from there early roots
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i like old tractors of all colors
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AllisFreak MN
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Posted: 30 Apr 2011 at 9:46pm |
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Spud; How can we NOT send money to China when every fricken thing we buy nowadays is made there?? As far as spending money on foolish programs like ethanol; I imagine you'd rather we keep subsidizing oil, being you're an oil man and all. I know, this is bordering on moving to the political section.
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'49 A-C WD, '51 A-C WD, '63 A-C D17 Series III, 1968 A-C One-Seventy, '82 A-C 6060, '75 A-C 7040, A-C #3 sickle mower, 2 A-C 701 wagons, '78 Gleaner M2
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JohnCO
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Posted: 30 Apr 2011 at 10:22pm |
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Getting back to the subject, It seems to me that if AGCO puts money into a market with a huge demand for what they make, they are going to make money and, hopefully, bring the profits back to the US. I seriously doubt AGCO has any technology the Chinese don't already have, what they may have is management and marketing ability to improve the product and expand the market share of the company. I doubt if there will be much electronics in the machines like we see here. Just simple, reliable reasonably priced machines.
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"If at first you don't succeed, get a bigger hammer"
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CTuckerNWIL
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Posted: 01 May 2011 at 10:03am |
JohnCO wrote:
what they may have is management and marketing ability to improve the product and expand the market share of the company. |
I seriously doubt many of the Orange collectors would agree about AGCO having management and marketing ability when they stopped production of their sales leading tractor in North America.
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Byron WC in SW Wi
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Posted: 01 May 2011 at 5:52pm |
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jtheise4,
I believe the 1643 is made by Iseki for MF so they don't even make it. Still, AGCO has some good products but very poor management.
On the other topics. We need to cut spending and balance our budget and it needs to stay balanced.
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JohnCO
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Posted: 02 May 2011 at 12:32am |
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In thinking about my last post, I've got to admit that AGCO management sure hasn't shown much sense here in NA, but considering their stock price and that sales are good in the rest of the world, somebody, somewhere must be making smart moves. Buying a company in China does seem like a good idea to me. Maybe they'll start making G's again!
Edited by JohnCO - 02 May 2011 at 12:33am
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"If at first you don't succeed, get a bigger hammer"
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PeteMN
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Posted: 03 May 2011 at 10:55pm |
Allis Chalmers had a lot of small to mid-size tractors that would probably work well in China, they could just give them the blueprints to the D-series, the 185, and the 8000 series. And once they got the manufacturing bugs out of them they could start shipping them to the US. I don't suppose any of them would meet the new emissions specs, oh well, whatever Agco has them building will get copied soon enough....... if its worth copying.
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