Recently, John Deere (NYSE: De) announced that it had obtained full ownership of three Deere Hitachi joint venture factories and had begun to sign a new license and supply agreement with Hitachi construction machinery. From February 28, 2022, the two companies have terminated their joint venture manufacturing and marketing agreement. Earlier, the two sides announced in August 2021 that they would terminate the long-term joint venture manufacturing and marketing agreement and end the joint venture relationship.
The original joint venture plant will continue to produce John Deere brand excavators and forestry equipment, and will stop producing Hitachi brand products. Now the three factories will be renamed:
John dilkensville factory, located in kensville, North Carolina;
John Deere special equipment factory, located in Langley, British Columbia, Canada;
John Deere Brazilian excavator factory, located in Inda ituba, Brazil.
By signing a new supply agreement with Hitachi, John Deere will continue to provide a complete excavator product portfolio.
John Deere has ended the row of selling Hitachi branded excavators and mining equipment in the American market, and Hitachi undertakes the distribution and support of these products. Deere dealers may continue to support the sales of their existing Hitachi brand excavators.
With the completion of this acquisition, John Deere now controls the design, product and function update of its excavator, so that it can respond to customer needs more quickly, and integrate the excavator with other John Deere construction machinery products.
"As we open this new chapter, our tradition of innovation continues. Looking ahead, we can use the technology developed for other product lines and production systems of John Deere enterprise to extend these advanced solutions to the excavators designed by John Deere, so as to strengthen the whole product series." John stone, President of John Deere's construction and forestry department and power system.
"We will continue to fulfill our mission to meet customers' needs for smarter, safer and more sustainable construction machinery business and shape a better tomorrow together."
