#Finland #circular economy #AGCO Power #Linnavuori

AGCO's Latest Investment: Enhancing Production and Sustainability

AGCO Corporation, a renowned global leader in agricultural machinery and precision ag technology, has announced a remarkable €54 million investment aimed at expanding their AGCO Power™ division's plant in Linnavuori, Finland. This strategic move aims to enhance the plant's operational capabilities while strongly aligning with the principles of the circular economy within modern power generation.

The renovated facilities now boast a cutting-edge machining hall specifically designed for the production of Continuously Variable Transmission (CVT) components and cylinder heads that will be used in AGCO Power's latest CORE engine. This expansion not only elevates the plant's manufacturing capacity but also emphasizes AGCO's commitment to sustainability by enabling increased remanufacturing of engines.

Kelvin Bennett, Senior Vice President of Engineering at AGCO, highlighted the significance of this investment: "This machining investment cements Linnavuori’s role as AGCO’s global hub for engine expertise. By integrating advanced production technology and sustainable practices, we are better equipped to support farmers globally."

In total, the expansion adds 5,600 square meters of production space, with the increased remanufacturing capability allowing the plant to significantly raise its output capacity. Over 1,000 engines are currently remanufactured annually, and with the enhancements, this figure is expected to soar to 2,500 engines per year. This not only extends the lifespan of existing machinery for customers but also promotes eco-friendly practices by allowing 80% of the engine's mass to be reused.

The initiative reinforces AGCO's Farmer First approach, as emphasized by Stefan Caspari, Senior Vice President of Customer Experience and Business Effectiveness at AGCO. Caspari stated, "Farmers highly value total cost of ownership. This investment enables us to better assist them not just with new equipment but also in maintaining their current machinery through efficient remanufacturing solutions."

The factory also enjoys a history of expertise in engine refurbishments, having started systematic remanufacturing in 1990. The remanufactured engines not only help to significantly reduce carbon footprints compared to new engine production but also provide farmers with a more sustainable option for maintaining their operations.

Additionally, AGCO Power's commitment to innovative power generation extends beyond just remanufactured engines. The company recently inaugurated a clean energy laboratory at the Linnavuori site, focusing on researching and testing low-carbon engine technologies for future endeavors. The new machining hall and remanufacturing expansion perfectly complement AGCO Power's strategy to lead in sustainable power solutions, reinforcing its established presence in the agricultural sector.

AGCO’s diverse brand portfolio, which includes Fendt®, Massey Ferguson®, and Valtra®, strongly demonstrates their commitment to aiding global farmers with high-quality machinery and technology solutions. Founded in 1990 and headquartered in Duluth, Georgia, AGCO reported impressive net sales of approximately $11.7 billion in 2024.

The significance of AGCO's investment in the Linnavuori plant illustrates a robust commitment to both advancing manufacturing capabilities and prioritizing sustainable practices. With ongoing innovations and a clear focus on the farmers' needs, AGCO solidifies its position as a forward-thinking leader in the agricultural machinery sector.