bontai Joe
06-07-2005, 04:35 PM
I saw this on Reuter's news service:
AGCO in China joint venture talks - FT report
Thu Jun 2, 2005 08:36 PM ET
LONDON, June 3 (Reuters) - Farm equipment maker AGCO Corp.(AG.N: Quote, Profile, Research) is in talks with China's largest tractor producer over a joint venture to make Massey Ferguson tractors in China for the first time, the Financial Times reported on Friday.
AGCO Chief Executive Officer Martin Richenhagen hopes to finalise a deal this year with First Tractor, the Hong Kong-listed manufacturer based in Henan province in eastern China, the newspaper said.
He predicted a growing market in China as small farms consolidate into larger units which need heavy farm equipment.
"I think farms will get bigger because there is a huge demand for quality foods, and since industry is growing there is a tendency for people to work in factories rather than on smaller farms," Richenhagen was quoted as saying.
The FT said the planned tractor factory could initially produce 2,000-3,000 tractors a year, possibly rising to 10,000 within two to four years.
Duluth, Ga.,-based AGCO could not be reached immediately for comment.
© Reuters 2005. All Rights Reserved.
AGCO in China joint venture talks - FT report
Thu Jun 2, 2005 08:36 PM ET
LONDON, June 3 (Reuters) - Farm equipment maker AGCO Corp.(AG.N: Quote, Profile, Research) is in talks with China's largest tractor producer over a joint venture to make Massey Ferguson tractors in China for the first time, the Financial Times reported on Friday.
AGCO Chief Executive Officer Martin Richenhagen hopes to finalise a deal this year with First Tractor, the Hong Kong-listed manufacturer based in Henan province in eastern China, the newspaper said.
He predicted a growing market in China as small farms consolidate into larger units which need heavy farm equipment.
"I think farms will get bigger because there is a huge demand for quality foods, and since industry is growing there is a tendency for people to work in factories rather than on smaller farms," Richenhagen was quoted as saying.
The FT said the planned tractor factory could initially produce 2,000-3,000 tractors a year, possibly rising to 10,000 within two to four years.
Duluth, Ga.,-based AGCO could not be reached immediately for comment.
© Reuters 2005. All Rights Reserved.