AGCO Starts Local Production in North Africa

By CnAgri Print

AGCO held a ceremony this week to mark the production of the first Massey Ferguson tractor produced by AGCO's joint venture in Constantine, Algeria.

"This is a significant step in our long term growth strategy for the African continent," stated Martin Richenhagen, AGCO's Chairman, President and Chief Executive Officer. "AGCO is committed to grow its presence within Africa by investing in local manufacturing, distribution infrastructure and new training sites. We have committed to invest US$ 100 million in Africa over the coming years."

The new joint venture in Algeria for the production of Massey Ferguson branded tractors was established earlier this year. AGCO entered an agreement with two local partners - L'Entreprise Publique Economique de Production de Tracteurs Agricoles (EPE ETRAG Spa) and L'Entreprise Publique Economique de Commercialisation de Mat閞iels Agricoles (EPE PMAT Spa) - to form the Algerian Tractors Company of which AGCO owns 49%.

The new joint venture is based in El Khroub, close to Constantine, and produces Massey Ferguson tractors for sale into the domestic Algerian market.

The production has recently started and the ceremony was held to mark the occasion of the first Massey Ferguson tractor to leave the factory.