John Deere to acquire Deere-Hitachi joint venture factories
John Deere has agreed with Hitachi Construction Machinery to end the Deere-Hitachi joint venture manufacturing and marketing agreements. The companies will enter into new license and supply agreements, which will enable John Deere to continue to manufacture and distribute the current lineup of Deere-branded excavators in the Americas.
“For many years, John Deere and Hitachi enjoyed a mutually successful partnership in the Americas,” said John Stone, President, Construction and Forestry Division, and Power Systems, John Deere. “As we turn the page to a new chapter of Deere-designed excavators, we remain committed to supporting our customers of today and tomorrow.”
The following changes will go into effect on Feb. 28, 2022, contingent upon regulatory approval.
- John Deere will acquire the Deere-Hitachi joint-venture factories in Kernersville, North Carolina; Indaiatuba, Brazil; and Langley, British Columbia, Canada.
- John Deere will continue to manufacture Deere-branded construction and forestry excavators currently produced at the three Deere-Hitachi factories. These locations will discontinue production of Hitachi-branded excavators.
- John Deere’s marketing arrangement for Hitachi-branded construction excavators and mining equipment in the Americas will end; Hitachi will assume distribution and support for these products.
“Looking to the future, John Deere will build on our legacy of quality and productivity and accelerate development of industry-leading technology and machinery that answers the fundamental need for smarter, safer, and more sustainable construction so our customers can shape tomorrow’s world.” said Stone.