MOLINE, Ill. - Manufacturer of agricultural equipment, Deere & Company, said Friday it plans to expand small tractor manufacturing in China by acquiring the Ningbo Benye Tractor & Automobile Manufacture Co. Ltd. Financial details of the expected acquisition have not been disclosed.
Deere said it has signed a definitive agreement to purchase the business and is seeking final review of the transaction by government approval authorities in China. The transaction is expected to close later this year.
Benye, which was started in 1955, is the largest tractor manufacturer in southern China. While 95 percent of the company's current revenues come from sales within China, the company has exported tractors to 70 countries worldwide.
Benye manufactures tractors in the 20 to 50 horsepower range.
Deere has provided products and services to the China agricultural market since 1976 and has manufactured equipment in China since 1997, when it entered a joint venture to build combines at a factory at Jiamusi.