AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and distributor of agricultural equipment today announced that it has entered into an agreement to establish a Joint Venture with Sampo Rosenlew of Finland. The Joint Venture represents a further step in the expansion of AGCO’s harvesting machinery business.
AGCO will take a 10% stake in Sampo Rosenlew, the Finnish based manufacturer of combine harvesters and forestry equipment, under an agreement which will also cover aspects of product distribution and component supply. AGCO will distribute Sampo Rosenlew combine harvesters under AGCO brand names within key markets in Europe, Africa, Middle East, Russia and the CIS. These machines will be supplied by Sampo Rosenlew in either fully-assembled form or packaged for CKD (Completely Knocked Down) operations. In addition, AGCO is to supply critical parts manufactured at its Breganze, Italy plant to the Finnish manufacturer.
"This new move presents major opportunities for both companies," says Gary Collar, AGCO Senior Vice President and General Manager for Europe, Africa, Middle East, (EAME) and Australia/New Zealand (ANZ). "For AGCO, it will enable the Company to offer an extended product line in the smaller combine category, further improve our capability for the EAME CKD business in developing markets and provide the potential for business development in the forestry sector."
Jali Prihti, CEO of Sampo Rosenlew stated: "We are delighted to be entering this new Joint Venture with AGCO. We already have historical business ties with the Company and its brands, and this new agreement allows us to benefit from boosted distribution of our products particularly in developing markets where AGCO has a strong presence. Furthermore, the Joint Venture gives us access to AGCO’s manufacturing and supply expertise and offers opportunities for further strategic relationships on joint projects."
