Deere to invest $40 million for production of high-powered 8R tractors
Deere & Company has made plans to invest $40 million to manufacture its high-horsepower 8R tractors at the company's factory in Montenegro, Brazil.
The move is part of a larger strategy to expand Deere's market presence in Brazil. The company currently builds other kinds of tractors in Montenegro, but not the popular 8R model.
"Our customers in Brazil are investing in higher horsepower tractors in the range offered by the 8R model," said Mark Von Pentz, president, Worldwide Agriculture & Turf Division. "Our decision to manufacture the 8R in Montenegro should allow the machine to be eligible for FINAME financing – the public program that targets investment in Brazil's economic development."
Von Pentz cited sustained demand in both North and South America, as well as increased productivity linked to high-horsepower models like the 8R.
Deere first alighted in Brazil in 1979, when it invested in a joint venture there. The Montenegro facility was built in 2008.