AGCO Invests €54 Million to Expand Engine Production in Finland

AGCO's Investment in Engine Production

AGCO Corporation, a global leader in agricultural machinery, has announced a significant investment of €54 million in its AGCO Power division's manufacturing plant located in Linnavuori, Finland. This investment is part of a larger commitment to enhance production capabilities and focus on sustainable practices that are vital for modern agriculture. The expanded facilities will play a crucial role in strengthening AGCO’s competitiveness and support the company’s goals related to circular economy principles.

Advanced Manufacturing Facilities

The newly expanded plant now includes state-of-the-art machining and remanufacturing facilities. One of the key additions is a highly sophisticated machining hall dedicated to manufacturing components for Continuously Variable Transmission (CVT) systems and cylinder heads for AGCO Power's innovative CORE engine. This new setup not only improves production efficiency but also significantly increases the plant’s capacity to produce remanufactured engines.

AGCO Power’s Linnavuori plant is already recognized for its expertise in manufacturing engines for some of the most well-known tractor brands, including Fendt®, Massey Ferguson®, and Valtra®. With the new facilities, AGCO aims to reinforce its position as a leader in sustainable power generation, ensuring that farmers can rely on efficient and environmentally friendly engine solutions.

Commitment to Sustainability

Kelvin Bennett, Senior Vice President of Engineering at AGCO, stated, “This investment fortifies Linnavuori's role as AGCO's global center of expertise for engines. We are committed to advanced production technology and sustainable solutions that benefit farmers worldwide.”

The new production space adds around 5,600 square meters to the facility, establishing it as Finland’s largest manufacturing site for transmission gears by volume. This expansion is not merely about increasing capacity; it is strategically aligned with AGCO's broader vision of supporting sustainable agricultural practices.

Stefan Caspari, Senior Vice President of Customer Experience, emphasized the significance of remanufacturing as part of AGCO's long-term strategy. “Farmers are concerned about total costs of ownership. This expansion enables AGCO to better assist them not just with new machinery but also with cost-effective solutions for maintaining their existing equipment through our enhanced remanufacturing capabilities.”

Remanufacturing as a Circular Economy Practice

AGCO Power has been at the forefront of remanufacturing engines for over five decades. The facility’s remanufacturing operations began systematically in 1990, and they currently refurbish over 1,000 engines a year. With the new facilities, that capacity is expected to rise to 2,500 annually. This remanufacturing process is a prime example of the circular economy in action, allowing up to 80% of the engine’s materials to be reused, ultimately leading to a substantially lower carbon footprint compared to new engine manufacturing.

In addition to remanufacturing, the Linnavuori facility also produces gas engine blocks and marine engines, catering to a diverse range of agricultural and industrial applications. AGCO Power's commitment to clean energy is reflected in its establishment of a clean energy laboratory at the Linnavuori site in 2024, where new technologies aimed at reducing carbon emissions are actively researched and developed.

Conclusion

Through this €54 million investment, AGCO is not only enhancing its operational capabilities but also spearheading efforts towards sustainable power generation in the agricultural sector. The company's dedication to innovation and sustainability underscores its mission to equip farmers with the necessary tools to thrive in an ever-evolving industry. As AGCO continues to lead by example, its initiatives present a roadmap for others in the agriculture machinery market to follow suit. Farmers can rest assured that AGCO remains committed to supporting their needs through forward-thinking technologies and practices that are both practical and sustainable.