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Deere To Expand Russian Factory

World's largest agricultural equipment maker said it will double manufacturing space at factory near Moscow and start its own leasing company in Russia.

MOLINE, Ill. (AP) -- Deere & Co. will double the manufacturing space at a factory near Moscow and start its own leasing company in Russia, the world's largest maker of agricultural equipment said Thursday.

The announcement was made as Deere Chairman and CEO Samuel Allen joined other CEOs and Vice President Joe Biden at an investment conference in Russia.

The investment at the Domodedovo factory will help the company expand its product line in Russia, adding new equipment such as log forwarders, which load and haul logs and are widely used in the Russian forestry industry, Deere said in a statement..

Expanding the plant will help Moline, Ill.-based Deere serve Russian customers, as well as other nearby markets, the company said.

The leasing company will be set up through Deere's financial services division, adding to financing offered by local banks and leasing companies, Deere said.

"Russia can make a significant and sustainable contribution to help meet the world's growing demand for food, energy, and forest products," Allen said in the statement.