AGCO

AGCO

Formerly called	Gleaner-Allis Corporation, Allis-Gleaner Corporation
Type	Public
Traded as	NYSE: AGCO
Industry	Manufacturer
Predecessor	Allis-Chalmers 1909–1985, Deutz-Allis 1985–1990
Founded	1990
Headquarters	Duluth, Georgia United States
Area served	Worldwide
Key people	Martin H. Richenhagen (President & CEO)[1]
Products	Agricultural equipment Tractors Combines Self-propelled sprayers Hay tools Forage equipment Seeding & Tillage equipment Diesel engines List of brands
Services	Parts, Service, Finance
Revenue	US$ 10.786 billion (2013)[2]
Operating income	US$ 610.3 million (2011)[2]
Net income	US$ 585.3 million (2011)[2]
Total assets	US$ 7.2572 billion (2011)[2]
Total equity	US$ 3.0312 billion (2011)[2]
Number of employees	17,366 (2011)[2]
Website	www.agcocorp.com

AGCO Corporation is an American agricultural equipment manufacturer based in Duluth, Georgia, United States. AGCO offers a line of tractors, combines, hay tools, sprayers, forage and tillage equipment, which are distributed through more than 3,100 independent dealers and distributors in more than 140 countries worldwide.^[3]

History

Hesston 5670 round baler, in 2010

AGCO was established in 1990 when executives at Deutz-Allis bought out Deutz-Allis North American operations from the parent corporation KHD, (Klöckner-Humboldt-Deutz), a German company that owned the Deutz-Fahr brand of agriculture equipment. KHD had purchased portions of the Allis-Chalmers agricultural equipment business five years earlier.^[4]

The company was first called Gleaner-Allis Corporation, then rearranged to be Allis-Gleaner Corporation, or AGCO. The Deutz-Allis line of tractors were renamed AGCO-Allis, and Gleaner became a brand of its own for combines. The Deutz-Allis brand continued in South America until 2001, when they were renamed AGCO-Allis. They continue in the lime-green livery. In 2001, AGCO Allis was renamed AGCO in North America.

In March 1991, AGCO purchased the Hesston Corporation^[5][6] gaining hay and forage equipment as well as technologies such as the grain auger (used to unload grain quickly from combines), invented in 1947 by Lyle Yost.^[7] Hesston had a 50 percent joint venture with Case International, now a part of CNH Global. AGCO purchased the White Tractor line from the Allied Corporation's White-New Idea company.^[8] In 1993, AGCO purchased the remainder of White-New Idea,^[9] gaining New Idea hay equipment and manure spreaders, and White planters. White New Idea had a large manufacturing plant operating in Coldwater, Ohio, USA.

Massey Ferguson 6490 tractor, in 2008

Also in 1993, AGCO purchased the North American distribution rights to Massey Ferguson, a worldwide agricultural equipment company. In 1994, they purchased McConnell Tractors,^[5] manufacturer of the large articulated Massey Ferguson tractors. AGCO developed the Agcostar line of articulated tractors. Later in 1994, the Black Machine line of planters was purchased.

1995 saw the purchase of the AgEquipment Group,^[8] which manufactured tillage equipment and loaders under the Glenco, Tye and Farmhand brands. In 1996, acquisitions went international with the purchase of Iochpe-Maxion in Brazil.^[5] This was the Brazilian company that had rights to the Massey Ferguson brand and manufacturing in the region, as well as the Maxion brand of industrial equipment. This was also the year that AGCO purchased Deutz Argentina, the number one leader of tractors in Argentina.^[9] Also in 1996, AGCO purchased Western Combine Corporation and Portage Manufacturing in Canada.^[10] Western Combine had previously purchased the assets of the Massey Combine Corporation's combine operation, which had been spun off by Massey-Ferguson.

Fendt 930 Vario tractor, in 2009

1997 was the year of the major purchase of Fendt in Germany, the leading German tractor company.^[11] Fendt is well known for its advanced technology. AGCO also acquired Dronningborg Industries in Denmark, the manufacturer of European Massey-Ferguson combines, and former manufacturer of Dronningborg combines.^[12]

In 1998, AGCO made a joint venture with Deutz AG to produce engines in Argentina, and purchased the Spra-Coupe and Willmar companies.^[13] Spra-Coupe and Willmar are leading sprayer companies in North America. SpraCoupe originated in Bismarck, ND. Upon purchase by AGCO, the manufacturing of SpraCoupes was moved to Willmar, Minnesota where the Willmar branded fertilizer tenders and "Wrangler" articulated loaders were being manufactured. SpraCoupe and Willmar products were manufactured in Willmar from 1998 to 2001.

For the year 2000, AGCO bought out its partner CNH Global N.V. in the Hay and Forage Industries joint venture.^[14]

In 2001, AGCO purchased Ag-Chem Equipment, expanding its application equipment business.^[15] Ag-Chem Equipment was based in Jackson, Minnesota and developed the TerraGator flotation-type and RoGator rowcrop-type applicators. Also that year, the SpraCoupe and Willmar brands moved their manufacturing from Willmar, MN to the Jackson, Minnesota facility and the Agco-Allis and White tractor lines were merged in North America under the AGCO brand, continuing in the orange color.

2002 was the year that AGCO purchased rights to the Challenger name and the tracked tractors from the Caterpillar Corporation,^[16] giving AGCO a well-known brand name and high-power tracked tractors. AGCO further developed the Challenger line into: wheeled tractors, using tractors manufactured by Iseki, Agritalia, the Massey Ferguson factory and the Brazilian Valtra factory; combines, rebranding some Massey Ferguson/Gleaner -built combines; and hay equipment, using Hesston-built hay equipment. AGCO also purchased the Sunflower Manufacturing Company in Beloit, Kansas, which manufactures tillage, seeding and specialty harvesting equipment.^[17]

2004 brought about the purchase of the Valtra tractor company from the Kone Group, in Finland. Valtra has some licensing agreements with the Eicher company in India for tractor production, and also with the HEMA group in Turkey. The purchase of Valtra also included SISU POWER engines.^[18][19]

Valtra T170 tractor, in 2008

2006 saw a re-focusing of the various brands, and the reduction of individual brands. AGCO announced plans to combine some, and make some only part of a larger brand, or co-branding. Examples include the Massey Ferguson 9635 Hesston self-propelled swather, and the AGCO 9365 Hesston self-propelled swather. Challenger has seen further expansion with the further consolidation of the AgChem brand into Challenger, and the introduction of Agritalia built tractors and an articulated Challenger tractor.

In 2007, AGCO bought 50% of Laverda S.p.A from ARGO SpA, which included the Gallagnani and Fella-Werke hay equipment brands.^[20][21]

In 2008/2009 AGCO, the Challenger, Valtra, and Massey Ferguson large row crop tractors were launched in Europe and North America respectively with AGCO's e3 Selective Catalytic Reduction (SCR) emission reduction technology.^[22]

Late in 2009, AGCO announced that it would phase out the orange AGCO Tractors by 2011.^[23] In 2009, AGCO had sales of US$6.6 billion.

In late 2010, AGCO announced the plan to acquire the remaining 50% of Laverda, which included Fella-Werke as well. The acquisition was finalized in March 2011.^[24][25][26]

In 2011, AGCO plans to transfer its high-horsepower wheeled-tractor assembly of tractors sold in North America from Beauvais, France to Jackson, Minnesota, where it will expand the plant by 75,000 square feet (7,000 m²).^[27]

In 2011, AGCO said that it will invest $40 million in its Hesston plant by building a new 200,000-square-foot (19,000 m²) painting and finishing building. Construction began June 2011 and was completed in 2013.^[28][29][30]

In October 2011, AGCO purchased GSI. It was based in Assumption, Illinois and manufactures grain storage and handling equipment as the GSI Group.^[31]

In 2012. AGCO acquired 60% of Santal Equipamentos, a sugar cane planting and harvesting equipment. AGCO purchased 80% of Shandong Dafeng Machinery Co, a combine harvester manufacturer in China. AGCO formed the Algerian Tractors Company joint venture with the Algerian brand Etrag with 49% ownership.

In 2013, AGCO’s GSI acquired Johnson System, a manufacturer of catwalks and towers.

Core Brands

AGCO products are sold through five core brands: Challenger, Fendt, GSI, Massey Ferguson, and Valtra.

• Challenger, tractors, combine harvesters, crop sprayers, hay equipment available in the Americas, generally catering for high hp tracklayer and crop sprayer market in Europe and Australia. Row crop tractors in the Americas are re-badged Massey Ferguson.
• Fendt, tractors, combine harvesters, forage/hay equipment, forage harvesters and balers. AGCO's premium brand, known globally as pioneers for the IVT transmission and being fore runners in tractor technology. Combines, forage/hay equipment and balers are identical to Massey Ferguson products.
• GSI, grain storage, grain drying & conditioning equipment, and material handling distributed worldwide.
• Massey Ferguson, tractors, combine harvesters, forage/hay equipment and balers available globally. Regarded as AGCO's bread and butter brand supplying tractors from 19.5–400 hp. Low and high spec tractors available one of AGCO's best selling brands.
• Valtra, tractors in Europe, tractors, sprayers and combine harvesters in South America. AGCO's specialist brand, hold much lower market share than Fendt and Massey Ferguson except in Scandinavian countries where they are known for good forestry performance. Broad range of unique specification available including reverse drive in tractors from 99–400 hp. Valtra prides itself on being highly customisable and is the only tractor manufacturer to offer a wide range of colour options off the production line much like a car. Combines are identical to Massey Ferguson products and sprayers are identical to Challenger.

Other Brands

• FELLA forage equipment. Branded under Massey Ferguson and Fendt globally and exclusively in Europe. Also branded as Challenger in the Americas.
• Gleaner, combine harvesters marketed in North America, South America, and Australia. These machines share many components with their stable mates Massey Ferguson, Fendt and Valtra however are different in their structural design and other areas such as the cabin to cater for the American market. The other brands use the same Massey Ferguson platform.
• AGCO Power formally Sisu Diesel, the company was included in the acquisition of Valtra by AGCO. The company was branded AGCO SISU POWER in 2008 then in 2012 renamed AGCO Power. These engines are found in the company's Massey Ferguson and Valtra brands, used in Challenger tracked machines and all combine harvester produced by AGCO. It has been hinted that Fendt will follow suit and replace the low cubic capacity Deutz engines.
• AGCO Parts part of Sparex Holdings Ltd. Operating globally as part as parts genuine parts supplier for AGCO brands and also other brands and accessories after AGCO acquired Sparex Holdings Ltd.
• Sunflower Manufacturing is the tillage and seeding division of the AGCO Corporation, and manufactures all equipment used for tillage of land, including discs, cultivators and finishing tillage equipment, as well as seeding equipment for grains. ^[32]

Manufacturing locations

Fendt manufacturing plant in Marktoberdorf, Bavaria, Germany, 2009

Laverda headquarter and production plant in Breganze, Italy

AGCO North America

• Hesston, Kansas, USA (former Hesston Corp)
• Beloit, Kansas, USA (former Sunflower Manufacturing)
• Batavia, Illinois, USA (AGCO Parts Division)
• Jackson, Minnesota, USA (former Ag-Chem Equipment Co.)
• Independence, Missouri, USA (former Gleaner / Massey Ferguson Combine manufacturing)
• Querétaro, Bajío, Mexico

AGCO South America

• Haedo, Buenos Aires Province, Argentina (made Deutz engines, axles, gearboxes for AGCO Allis tractors)
• General Rodriguez, Buenos Aires, Argentina (made Massey Ferguson and Valtra tractors, also the AGCO Power 620 engines)
• Rosario, Argentina (now disabled, part of BADEN – probably used in the future by Frizmeier to make cabines)
• Canoas, Brazil
• Ibiruba, Brazil
• Mogi das Cruzes, Brazil
• Santa Rosa, Brazil

AGCO Europe

• Randers, Denmark
• Linnavuori, Nokia, Finland
• Suolahti, Finland
• Beauvais, France
• Feucht, Germany
• Marktoberdorf, Germany
• Baeumenheim, Germany
• Breganze, Italy
• Grubbenvorst, Venlo, Netherlands
• Coventry, United Kingdom (former Massey Ferguson manufacturing)

AGCO Africa

• Constantine, Algeria (joint venture with Algeria Tractors Company)

AGCO Asia

• Changzhou, China
• Yanzhou, China
• Dindigul, India (joint venture with TAFE Tractors)

See also

• List of companies in the United States
• List of S&P 400 companies

References

Further reading

• Factory on the Plains: Lyle Yost and the Hesston Corporation; Billy Mac Jones; Wichita State University; 1987; ASIN B0006EQOU0.

External links

Wikimedia Commons has media related to AGCO.

• AGCO (official website)
• AGCO SEC Filings