Deere-Hitachi expands US manufacturing

Deere-Hitachi Construction Machinery Corporation, a 50:50 joint venture between equipment manufacturers John Deere and Hitachi, is to invest US$ 97 million to increase capacity at its Kernersville, North Carolina, US operations.

The expansion will increase the joint venture's excavator manufacturing capacity by +60%, according to the companies. An extra 60 acres (242811.39 m²) of land is planned to be added adjacent to the existing facility for a new warehouse, while the existing factory will also be expanded with new technology.

The companies said the investment would increase capacity on current machine models manufactured in Kernersville, and add production capability for additional mid-sized excavator models.

Al Seeba, president and CEO of Deere-Hitachi, said, "The overall market for excavators remains quite strong and customer demand for the high-quality Deere and Hitachi-branded machines manufactured by our employees in Kernersville continues to grow. We believe the time is right to further invest in our North Carolina facility."

Deere-Hitachi said it expected to hire an additional 340 full-time employees over the next four years to support the expansion. It currently employs over 700 full-time employees at its North Carolina facility, building several models of mid-sized excavators sold throughout North, Central and South America.

The Deere-Hitachi joint venture was established in 1988, and news of the US expansion comes after the companies announced plans for a new excavator factory in Brazil last October.