Deere & Company announced on February 29 that it will expand its presence in the world's largest and fastest growing market for construction equipment by entering into a joint venture in
Deere said it has signed a definitive agreement to own 50 percent of Xuzhou Xuwa Excavator Machinery Co., Ltd. (XCG) – a subsidiary of Xuzhou Bohui Science and Technology Development CO. Ltd. (Bohui). The companies are seeking review of the transaction by government approval authorities in
"Today's action provides Deere with a foundation in this important and rapidly expanding marketplace with an opportunity to leverage the expertise of XCG in
XCG was viewed as a viable partner for the Chinese market because of its strong domestic position as a leading Chinese manufacturer of construction equipment with a broad excavator product line including 14 models. Currently XCG is the third largest domestic excavator manufacturer in
"Excavators are a vital segment of the construction equipment market," Allen said. "XCG is well positioned to provide Deere recognition as a key provider of construction equipment in
While Deere has a long-term presence in the manufacturing of agricultural equipment in
Deere also has an important long-standing business relationship with Hitachi Construction Machinery Co., Ltd. a leading global manufacturer of excavators. The two companies manage a joint venture in
Financial terms of the Deere-XCG transaction were not announced.
John Deere (Deere & Company) is the world's leading provider of advanced products and services for agriculture and forestry and a major provider of advanced products and services for construction, lawn and turf care, landscaping and irrigation. John Deere also provides financial services worldwide and manufactures and markets engines used in heavy equipment. Since it was founded in 1837, the company has extended its heritage of integrity, quality, commitment and innovation around the globe.