John Deere acquires 3 Deere-Hitachi joint venture factories
By Rock to Road staff
By Rock to Road staff
John Deere has acquired ownership of three factories included in the Deere-Hitachi joint venture.
As well, Deere has entered new license and supply agreements with Hitachi Construction Machinery.
On Feb. 28, the two companies ended their joint venture manufacturing and marketing agreements — a partnership that dates back more than 30 years.
The end of the joint venture was announced in August 2021 and was contingent upon regulatory approvals.
“As we launch this new chapter, our legacy of innovation continues,” said John Stone, president of the John Deere Construction & Forestry Division and Power Systems.
“Going forward, we can leverage technology developed for other product lines and production systems across the Deere enterprise and extend those advanced solutions to Deere-designed excavators, strengthening the entire product portfolio.”
The three factories acquired by John Deere will now be referred to as:
- John Deere Specialty Products in Langley, British Columbia
- John Deere Kernersville in Kernersville, North Carolina
- John Deere Brasil Escavadeiras in Indaiatuba, Brazil
The three sites will continue to manufacture Deere-branded construction excavators and forestry equipment, while production of Hitachi-branded products will be discontinued.
Through a new supply agreement with Hitachi, Deere will continue to offer a full portfolio of excavators.
As well, Deere’s marketing arrangement for Hitachi-branded construction excavators and mining equipment in the Americas has ended. Hitachi has assumed distribution and support of these products. Deere dealers may continue to support their existing field population of Hitachi-branded excavators.
With the completion of this acquisition, John Deere now controls its excavator design, product, and feature updates, making it possible to rapidly respond to customer requirements and integrate excavators with other Deere construction products.
“We continue our mission to answer the fundamental need for smarter, safer, and more sustainable construction so our customers can shape tomorrow’s world,” Stone said.