AGCO growing presence in Africa
AGCO, Your Agriculture Company (NYSE: AGCO), a worldwide manufacturer and distributor of agricultural equipment, celebrated a groundbreaking ceremony for its African Master Parts Distribution Centre together with its South African distribution partner, Barloworld, in Johannesburg on Monday. "Africa offers tremendous growth opportunities in the agricultural equipment sector," said Martin Richenhagen, Chairman, President and CEO of AGCO. "AGCO is committed to growing its presence within Africa by investing in distribution infrastructure and new training sites. Our new warehouse will allow us to better serve our customers in Sub-Saharan Africa."
Massey Ferguson Model 6485 ground breaking ceremony at Pomona, Johannesburg People (from left to right): Boris Schoepplein, Vice President Parts Europe, Africa & Middle East (AGCO); Godfried Heydenrych, Director Barloworld Handling (Barloworld); Nuradin Osman, Special Assistant to the Chairman and Director Operations Africa & Middle East (AGCO); Charles van Niekerk, General Manager MF and Challenger (Barloworld)
The new AGCO Parts Distribution Centre will be located close to the O.R. Tambo International Airport in Johannesburg with optimal logistical connections. A wide range of up to 40,000 parts will be stocked locally to significantly improve order response times and machine uptime for AGCO's African customers. "Investing in AGCO's after-sales service infrastructure in Africa allows us to be closer to the market and provide better service levels to our local distribution partners and customers," explained Hubertus Mühlhäuser, Senior Vice President, General Manager, Europe, Africa & Middle East.
"A continent like Africa has significant potential for growth in the agricultural sector. With 11 percent of the world's arable land, much of which is uncultivated, Africa will benefit from modern, mechanized farming techniques," continued Hubertus Mühlhäuser. "Overall, AGCO plans to invest up to $100m USD in its Africa business over the next few years. The new master parts warehouse in Johannesburg is a first step to improve our after-sales infrastructure for African markets." AGCO's technology-driven products will contribute to the modernization of the African agricultural market, and the local presence will allow AGCO to better serve African customers with high quality products and services.
With over 50 years of experience in Africa through its Massey Ferguson tractor brand, AGCO already leverages alliances with governments, foreign investors and donors to improve agricultural practices in Africa. AGCO plans to fund the development of Model Farms and Training Centers in Zambia, Ethiopia, Morocco and South Africa that will allow local farmers and dealers to be trained on new farming methods and technology.
The construction of AGCO's African master parts warehouse will be completed by the end of 2012. In addition to supporting AGCO's distributors in Southern Africa, AGCO Parts shipments to Barloworld's dealer network will also be prepared from the new AGCO warehouse. The joint approach will allow Barloworld to offer an even better service to its customers due to the expanded range of locally stocked parts.
ABOUT AGCO
AGCO, Your Agriculture Company, (NYSE: AGCO), is a global leader focused on the design, manufacture and distribution of agricultural machinery. AGCO supports more productive farming through a full line of tractors, combines, hay tools, sprayers, forage equipment, tillage, implements, grain storage and protein production systems, as well as related replacement parts. AGCO products are sold through four core machinery brands, Challenger®, Fendt®, Massey Ferguson® and Valtra® and are distributed globally through 3,100 independent dealers and distributors in more than 140 countries worldwide. Retail financing is available through AGCO Finance for qualified purchasers. Founded in 1990, AGCO is headquartered in Duluth, GA, USA. In 2011, AGCO had net sales of $8.8 billion. http://www.AGCOcorp.com
Safe Harbor Statement
Statements which are not historical facts, including expectations regarding the development and sales of products in this region, are forward-looking and subject to risks that could cause actual results to differ materially from those suggested by the statements. These risks include possible declines in demand for products as a result of weather, demand and other conditions that impact farm income, actions by producers of competitive products, and the general risks attendant to acquisitions. Further information concerning these and other factors is included in AGCO's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2011. AGCO disclaims any obligation to update any forward-looking statements except as required by law.
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