NEW YORK (AP) — Deere & Co. said Wednesday that it will spend about $100 million to build a new factory in India and expand an existing tractor plant in an effort to keep up with anticipated demand there.
John Deere India has been the largest exporter of agricultural machinery from India for the past 5 years. Its tractors made in India are now sold in 70 countries.
The world's biggest maker of agricultural equipment said the new factory, whose location has yet to be determined, will make small agricultural tractors that will be sold in India and for export to other countries. The existing factory is located in Pune.
Deere & Co. has continued to build up its presence in India, breaking ground on a new grain harvesting equipment factory in September and opening a new water plant in early 2010. The company based in Moline, Ill. also has a technology and engineering center in Pune and is joint venture partners with Ashok-Leyland to build construction machinery.
India is not the only place that Deere & Co. is investing overseas. Last month the company announced that it would invest $50 million in a new manufacturing plant in China to make construction equipment.