BRAZIL/SOUTH AMERICA REPORT
John Deere, has announced the acquisition of the condominium housing the company’s regional office in Indaiatuba (SP) and the Parts Distribution Center for South America (SA-PDC) in Campinas (SP), along with adjacent land for future expansion. The company also recently has acquired two plots in the Montenegro Industrial District (RS). These investments are part of the company’s ongoing commitment to development and expansion in the national market.
The South America Parts Distribution Center (SA-PDC), inaugurated in 2008, operated in a leased space. The purchase included an area of 125.5 000 m², the current installation of 76.2 000 m², and land of 198.3 000 m² nearby. In addition to the distribution center operation, the complex includes a building housing the Training Center (CT) and the Precision Agriculture and Innovation Center (CAPI), which will soon be relocated to the Brazilian Technology Development Center, announced in November 2023 by the company.
Investments in Montenegro (RS). In the Montenegro Industrial District (RS), John Deere acquired two plots adjacent to the factory. The purchase was conducted through the Industrial District Implementation Program (PROEDI/RS), as part of a total amount of US$ 53 million to be invested by 2026 in new production lines for component localization, expansion of storage areas, a warehouse and restaurant, as well as expansion of internal areas.
Brazilian Technology Development Center. Recently, the company announced the construction of the Brazilian Technology Development Center in Indaiatuba (SP), scheduled to open by the end of 2024. This will be the world’s first development and testing center for tropical agriculture, and the company is investing approximately US$ 35 million in the project.
The unit will design and test products to be used in Brazilian territory, considering variables such as soil, climate, connectivity levels, etc. In addition, John Deere expects to reduce the development time of new solutions by up to 40%, depending on the type of project, ensuring that local customers have access to products and solutions more quickly.
Expansion in Brazil. In the country, the company’s units produce equipment that reaches nearly 55 countries. And its Dealership and Distributor Network ensures coverage throughout the national territory with more than 300 sales points and a wide base of suppliers.
The company also has acquired these companies: Auteq Telematics, a software and onboard computer company; PLA, a sprayer manufacturer; Unimil, specialized in parts and after-sales services for sugar cane harvesters; and Ciber, a member of the Wirtgen Group, a world leader in pavement solutions; in addition to the acquisition of excavator factories through the joint venture with the Japanese company Hitachi in 2021
Source: Press Release Read The Article
PSR Analysis. The investments in Brazil on technology development, production and distribution affirms the belief of John Deere in the bright future of Brazilian and South American Agriculture, which have reached record harvests in Argentina in 2024 and every other year in Brazil when the weather doesn’t break the harvest. Moreover, exports from Brazil to other countries are expected to keep growing and gaining in importance, given the scale and competitiveness in the country. PSR
Fabio Ferraresi is Director Business Development, South America, for Power Systems Research
