Duluth-based AGCO Corp. has entered a joint venture to begin manufacturing its Massey Ferguson branded tractors in Constantine, Algeria, the North African country’s third largest city.
The newly formed Algeria Tractors Co. is 49 percent of owned by AGCO with the remaining 51 percent owned by the Algerian company Entreprise Publique Economique de Commercialisation de Materiels Agricoles.
“This new step underlines AGCO’s long-term strategy and commitment to accelerate the development of it’s business in Africa,” Martin Richenhagen, AGCO chairman and CEO, said in a press release.
AGCO plans to invest $100 million in Africa over the next few years. Some of this capital will be used to purchase farmland in Algeria, Ethiopia, Libya, Morocco, South Africa and Zambia.
These farms will serve as training grounds for local farmers to learn effective use of tractors and improved growing methods.
Another portion of the investment has gone to a master parts warehouse in Johannesburg, South Africa. Ground was broken for the warehouse this past May.
The Algerian factory on the opposite end of the continent is expected to begin producing tractors before the year’s end.
For more information visit www.agcocorp.com and http://www.sgpequipag.dz/pmat.php