#Finland #Sustainable Farming #AGCO Power #Linnavuori factory #Linnavuori

AGCO Power's €54 Million Investment in Finland's Manufacturing

AGCO Power, a division of the global agricultural machinery leader AGCO Corporation, has unveiled a significant investment totaling €54 million to expand its manufacturing facilities in Linnavuori, Finland. This investment is a part of AGCO's ongoing commitment to provide innovative agricultural machinery and to underline its dedication to sustainable production and the circular economy.

Enhancements to Manufacturing Facilities

The expansion includes the addition of a state-of-the-art machining hall that will focus on the production of continuously variable transmission components and cylinder heads for AGCO Power's latest CORE engine. This facility not only boosts production capacity but also reinforces the commitment to sustainability by enhancing the remanufacturing capabilities at the plant.

As a vital hub for AGCO's global operations, the Linnavuori factory is known for manufacturing engines that power some of the world's most reputable tractor brands, including Fendt®, Massey Ferguson®, and Valtra®. The latest upgrades will also allow the plant to remanufacture engines, thus playing a critical role in promoting a circular economy within the agricultural sector.

Kelvin Bennett, Senior Vice President of Engineering at AGCO, emphasizes the significance of this investment. “This expansion positions Linnavuori as AGCO’s global center of expertise for engines. We are investing in cutting-edge production technologies and sustainable solutions that support farmers worldwide,” he stated.

Circular Economy and Remanufacturing

AGCO’s remanufacturing operations have been in place for over fifty years, with systematic processes that started in 1990. Presently, over 1,000 engines are remanufactured annually, and with the new facilities, production capacity is expected to increase to 2,500 remanufactured units per year. This process significantly extends the lifecycle of agricultural machinery while reducing environmental impact, with approximately 80% of the materials in remanufactured engines being reused, including all iron components.

Stefan Caspari, Senior Vice President of Customer Experience and Business Efficiency at AGCO, points out that this expansion is aligned with the company's long-term strategy and farmer-focused approach. “Farmers are increasingly concerned about the total cost of ownership. This expansion enables AGCO to assist them better in not only investing in new equipment but also maintaining existing machinery through more cost-effective remanufacturing solutions,” he adds.

Advancing Sustainable Energy Production

In addition to the new machining hall, AGCO Power opened a clean energy laboratory in Linnavuori in 2024. Here, the focus is on researching and testing future low-carbon engine technologies that will help fortify AGCO’s stance as a leader in sustainable energy production solutions.

With more than 80 years of operational history, the Linnavuori plant remains a cornerstone of AGCO Power's manufacturing network, complementing facilities in China, Brazil, and Argentina. As AGCO continues to innovate and improve manufacturing processes, the expanded facilities will contribute significantly to meeting the demands of modern agriculture while maintaining an environmentally responsible approach.

Conclusion

AGCO Power's latest investment showcases the company’s ongoing commitment to advancing agricultural technology and sustainability. As the industry evolves, AGCO aims to not only support farmers with high-quality machinery but also to contribute meaningfully to reducing carbon footprints and promoting circular economic practices in the agricultural sector. For more detailed company insights and updates, visit AGCO's website.