#Sustainability #Finland #Agriculture #AGCO Power #Linnavuori

AGCO Power Expands Operations with €54 Million Investment

In a significant move to strengthen its manufacturing capabilities and commit to sustainable practices, AGCO Power, a subsidiary of AGCO Corporation (NYSE: AGCO), has announced a substantial investment of €54 million in its production facility located in Linnavuori, Finland. This investment builds on AGCO’s previous commitment of €70 million for the engine plant, emphasizing the company's dedication to innovation in agricultural machinery and precision technology.

The upgraded facility will feature cutting-edge machining resources and enhanced remanufacturing areas. These advancements are pivotal as AGCO Power aims to be at the forefront of the circular economy in modern energy generation. By enhancing their manufacturing capabilities, the facility is set to support farmers globally with more effective and eco-friendly engine solutions.

Expanding Production Capacity

The new production line includes advanced machining capabilities specifically designed for the Continuous Variable Transmission (CVT) components and the latest CORE engine heads. Additionally, the expansion of remanufacturing operations will significantly increase the plant's efficiency in producing refurbished engines. AGCO Power's Linnavuori plant is already the largest gear manufacturing facility in Finland, boasting a 5,600 square meter addition to its production area.

According to Kelvin Bennett, the Senior Vice President of Engineering at AGCO, this investment underscores Linnavuori's role as a global center of engine expertise. "We are investing in state-of-the-art production technology and sustainable solutions to support farmers around the world," he noted.

The expansion not only represents a boost in production but reflects AGCO’s long-term strategy that prioritizes cost-effective support for farmers. This includes not only investments in new technologies but also optimizing existing machinery maintenance through cost-efficient remanufacturing solutions.

Commitment to Sustainability

AGCO Power has been at the helm of remanufacturing engines for over five decades, having initiated these practices in 1990. The facility currently remanufactures more than 1,000 engines annually and, with new capabilities, aims to double this capacity to 2,500 per year. This remanufacturing process extends the lifecycle of machines, enabling the reuse of up to 80% of each engine's mass and significantly lowering the carbon footprint compared to manufacturing new engines.

Environmental Impact

The commitment to sustainability is further echoed in the establishment of a clean energy laboratory in 2024 at the Linnavuori site, where future low-carbon engine technologies are researched and tested. AGCO Power's new machining hall and improved refurbishing operations are integral to this vision, reinforcing AGCO Power's position in sustainable energy solutions within the agricultural sector.

AGCO’s range, including renowned brands such as Fendt®, Massey Ferguson®, and Valtra®, aims to deliver intelligent equipment and services that help farmers sustainably feed the planet. Founded in 1990 and headquartered in Duluth, Georgia, AGCO reported net sales of approximately $11.7 billion in 2024.

For more information about AGCO and its initiatives, visit their official website AGCO Corporation.