Samuel R. Allen, chairman and chief executive officer of John Deere, recently stated that the equipment-maker strives to satisfy customers' needs worldwide. To this end, the company will construct an engine factory in China whose products will be used to outfit its agricultural equipment.
"This engine factory will allow John Deere to deliver increased technology for China customers while leveraging enterprise investments and engineering resources in China," Allen said.
Deere will invest around $60 million in the plant set to be located in the Tianjin area, where the firm already operates other factories. The estimated date for the start of production at the facility is the end of 2013.
This engine factory is Deere's sixth strategically placed production location throughout the globe: North America, South America, Europe and Asia all have at least one. These facilities help supply Deere's operations that produce agricultural, construction and forestry machinery.
Senior vice president of John Deere Power Systems, Jean Gilles, noted that the firm's inclusion of its own engines in its machines gives customers better mileage-per-gallon, lower emissions and reduced noise while operating.