The long-term exclusive OEM supply agreement covers mini and compact excavators weighing less than 5 metric tons, including battery electric excavators. Wacker Neuson will design and manufacture the machines at its facilities in Menomonee Falls, USA, as well as Linz, Austria for the requirements of John Deere mainly for North America. The excavators will be distributed under the John Deere brand via John Deere's global dealer network. The companies plan a phased introduction of models. All Wacker Neuson models in the same product range, will continue to be distributed under the Wacker Neuson brand through Wacker Neuson's own distribution network.
Wacker Neuson management is confident that this agreement will substantially accelerate the Group's profitable growth trajectory in the medium term. It does not, however, expect significant contributions to sales and earnings within the next three to four years. The Wacker Neuson Group plans to invest an amount in the low double-digit million euro range to expand production capacity accordingly.
The agreement also covers a technical collaboration between John Deere and Wacker Neuson in relation to 5-9 metric ton excavators. John Deere will purchase and incorporate design and technical IP provided by Wacker Neuson, adapting and evolving it to meet its own manufacturing and innovation requirements. These models will be produced and launched on the market exclusively by John Deere, while Wacker Neuson will independently continue to develop, produce and distribute its own 5-9 metric ton excavators under its own brand.
“We are very much looking forward to adding another layer to our growth strategy through this OEM agreement with John Deere for mini and compact excavators. Our relationship with John Deere has been a successful collaboration that spans many years in both the agricultural and construction sectors. Our product and manufacturing excellence complements John Deere's established market reach in North America to open up outstanding business opportunities in the attractive mini and compact excavator market segment,” explains Dr. Karl Tragl, Chairman of the Executive Board and CEO of the Wacker Neuson Group.
“This agreement with John Deere ideally complements our growth strategy in Americas. We already offer our customers excellent products under the Wacker Neuson brand and we will continue to place a strong focus on expanding our product portfolio for the North American market in the future. The cooperation with John Deere opens up additional sales channels for our high-quality mini and compact excavators,” adds Gert Reichetseder, President & CEO North America at Wacker Neuson.
More information at:
www.wackerneusongroup.com
