AGCO announces investments in Brazil and strategies for the coming years

Company will invest R$340 million to manufacture new planter models, expand the heavy tractor line and improve sustainability

14.07.2022 | 11:56 (UTC -3)
Flavia Amarante /Ana Beatriz Paschoal /Cultivar Magazine
Company will invest R$340 million to manufacture new planter models, expand the heavy tractor line and improve sustainability
Company will invest R$340 million to manufacture new planter models, expand the heavy tractor line and improve sustainability

AGCO, a global manufacturer and distributor of agricultural machinery and precision agriculture technology, reinforced today (July 14), during an event in Brasília (DF), its commitment to Brazilian agribusiness, through investments of R$340 million in new technologies and assembly lines in its factories in the country.

The announcement was made by Chairman, President and CEO of AGCO, Eric Hansotia; and by AGCO General Manager and Vice President Massey Ferguson South America, Rodrigo Junqueira. “Farmers today face significant pressure to produce more food using fewer inputs. We are committed to providing the innovative precision agriculture technologies they need to increase farm income while minimizing inputs and impact,” says Hansotia.

The company, which owns the brands Fendt, Massey Ferguson, Precision Planting and Valtra, will increase the assembly capacity of heavy-duty tractors at the Mogi das Cruzes (SP) unit, expanding its area from 42.000m² to 57.000m² and creating a center intelligent logistics for parts storage, with AGVs (Automatically Guided Vehicle) and collaborative robots. “It is the first step towards having the national manufacturing of Fendt Vario 900 and MF 8700 S Dyna-VT tractors in the future. Our objective is to transform the Mogi das Cruzes factory into one of the group’s most technological in the world”, explains Junqueira.

At the Ibirubá (RS) factory, the resources will be used to manufacture new models of the Momentum planter. A 100% national project, the implement was launched in 2019 and revolutionized the planter market in Brazil, opening a new segment of transportable, high-performance machines that deliver extremely high results for the producer. 

In addition to expanding the area from 7.000m² to 20.000m², the Rio Grande do Sul unit will receive modifications to make the manufacturing process more sustainable. The initiative is based on the AGCO sustainability strategy, which seeks to offer farmer-focused solutions to feed our world in a sustainable way. A water reuse system, solar panels and a new painting process will be implemented, with lower emissions of organic volatiles, better ergonomics for employees, more automation and a 40% gain in the capacity of painted parts. 

Zero Emissions

During the event, AGCO also informed that, starting this year, its operations in Brazil will only use energy from renewable sources. The initiative includes the company's nine units in the country, including factories, distribution centers and offices, which consume 42 thousand MWh per year.

This change will positively contribute to AGCO's stated goals of reducing greenhouse gas emissions intensity by 20% and achieving 60% renewable energy across global operations.

Brazilian agricultural potential

Brazilian agribusiness feeds around 800 million people around the world. Brazilian farmers have adopted technological advances in the field to sustainably increase the production of food, fiber and livestock.

Aware of this potential for Brazilian agricultural growth and fleet modernization, AGCO brands have renewed their portfolio over the last five years with the launch of more than 300 products to offer farmers options that suit the needs of their properties. “Today, we have an extensive portfolio, from products for family farming to large-scale properties, with easy-to-operate technology to meet the needs of our farmers”, highlights Junqueira. 

Fendt expanded its dealership network, currently based in Sorriso (MT); Ferries (MA); Campo Novo do Parecis (MT); Sidrolândia and Maracaju (MS); Rio Verde (GO) and Luis Eduardo Magalhães (BA); and with upcoming openings in Imperatriz (MA); Primavera do Leste, Querência and Nova Mutum (MT). The network expansion announcement also includes the North regions, with Tocantins and Pará, and projections for expansion to the South, in Paraná and Rio Grande do Sul. In 2023, the brand will begin serving the Southeast region, in São Paulo and will extend operations in South America, starting with Paraguay and Chile. 

Massey Ferguson, a reference in the national agricultural market, continues to invest in expanding the range of machines to meet different customer profiles and different crops, including perfect combos of tractors with planters, harvesters, sprayers, a complete line of equipment for hay and forage, as well as precision technology packages, to contribute to the growth of Brazilian agriculture in a competitive and sustainable way. In 2022, the reliable and sustainable brand, which is “Born to Farm”, celebrates 175 years of history.

Valtra delivered more than 22 thousand products in the last three years and grew 33% across the entire portfolio. Over the 62 years in Brazil, the brand has always been close to the farmer, developing intelligent products and robust solutions, which generate more and more results. Specializing in tractors, sprayers and planters, the brand advances in offering connectivity solutions and seeks to triple sales by 2026, by strengthening the portfolio and expanding to other countries in South America. 

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