2000 Tractor News
The company recently finalized a $5.625 million economic incentive package from the state of Wisconsin that, together with a new work agreement reached with United Auto Workers last week, make it possible for the company to develop the new assembly operation. In addition, the Racine County Economic Development Corporation will provide a $400,000 loan for the project. Based upon current production levels, the operation is expected to employ approximately 125 hourly workers. However, employment would flex in accordance with production levels. The agricultural equipment market is currently in a low demand period, as a result of low farm commodity prices. The labor agreement also makes it possible for CNH to proceed with negotiations to sell its foundry, which is adjacent to the Racine tractor plant.
Case IH STX Series Steiger tractors will change the way farmers think about four-wheel-drive (4WD) tractors. With new advancements in steering, diagnostics, track design, comfort and serviceability, as well as the industry's highest horsepower rating, STX Series tractors are designed to help farmers maximize their productivity.
Under the agreement, Buhler will supply the worldwide New Holland commercial organization with these tractor lines until October 31, 2001, and the Genesis and G/70 series tractors to markets outside of North America until December 31, 2002. Buhler also will supply Winnipeg-produced replacement parts for the tractor lines to the New Holland organization on an ongoing basis.
The two companies announced last month that they had reached a sales agreement pending Department of Justice approval. The companies expect to complete the transaction by the end of this month.
Deere & Company's joint venture for tractor manufacturing in India has started production of 55-horsepower tractors for customers in that country. The joint venture, L&T - John Deere Limited, is located near Pune, India and is equally owned by Larsen & Toubro Limited and Deere & Company.
The difficulties in the North-American farming product export, which started in the autumn 1998, reflected in the whole farm machine industry until the end of last year. However, the demand in Europe, on an average, stayed at the level of 1998, and at the same time Valtra increased its sales in the EU and EFTA areas with 9%.