John Deere strengthens in Asia with new supplier agreement
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As demand for John Deere construction equipment increases around the globe, the US-based manufacturer Deere & Company has entered into a strategic supplier agreement with Wacker Neuson to initially provide compact excavators in China, Southeast Asia and Oceania. The models will range from 1,700-7,500 kg and are specifically designed and manufactured for customers in the growing Asia Pacific market. The two companies said that this partnership aims for a long-term collaboration in key growth markets.

“In partnering with Wacker Neuson, John Deere is leveraging the experience and success of their innovative and strongly customer-focused products to help us further develop our position in the Asia Pacific region,” said David Thorne, senior vice president for sales & marketing at John Deere Construction & Forestry. “These excavators are purpose-built to meet the demands of customers, and will be John Deere branded and sold through John Deere dealers.”

Both companies further highlighted that while they are committed to a long-term collaboration, the agreement currently will run for five years and can be extended in five-year increments. The initial rollout of four compact excavator models is expected to begin in early 2019, and will predominantly be sourced from the new Wacker Neuson factory in Pinghu, China. Service and support of these machines will be offered through the John Deere dealer network.

Deere and Wirtgen

Deere has also completed its acquisition of Wirtgen Group last year - a major move that will expand Deere’s reach in construction equipment to more customers, markets and geographies.

“The Wirtgen Group will enhance the size, scale and stature of our construction equipment business and will help Deere continue its global growth,” said Samuel R. Allen, Deere & Company’s chairman and chief executive officer.

The Wirtgen Group has a global footprint with approximately 8,200 employees and sells products in more than 100 countries through a large network of company-owned and independent dealers. The Group has premium brands across the entire road construction sector spanning milling, processing, mixing, paving, compaction and rehabilitation. Its product portfolio is complementary to Deere’s existing construction equipment offering and establishes Deere as the industry leader in global road construction.

Mr Allen said the acquisition aligns with Deere’s long-term strategy to expand in both agriculture and construction -- the company's two global growth businesses.