John Deere has announced it is entering into a strategic supplier agreement with German company Wacker Neuson with the goal of providing compact excavators to customers in China, Southeast Asia and Oceania.
The compact excavator models, designed and produced specifically for the Asia-Pacific marketplace, will range from 1.7 to 7.5 tonnes.
According to John Deere, the alliance will help it meet the growing worldwide demand for its products, especially in vital growth markets.
David Thorne, senior vice president of sales and marketing for John Deere Construction and Forestry, stated:
“In partnering with Wacker Neuson, John Deere is leveraging the experience and success of their innovative and strongly customer-focused products to help us further develop our position in the Asia-Pacific region.
“These excavators are purpose-built to meet the demands of customers, and will be John Deere branded and sold through John Deere dealers.”
The contract is for five years and may be extended incrementally, five years at a time. Both companies are reportedly committed to a long-term strategic alliance.
The first compact excavator models are set to be launched in early 2019 and will be produced primarily in Wacker Neuson’s new factory in Pinghu, China. Service and support for the new machines will go through John Deere’s expansive dealer network.
Established in 1848, Wacker Neuson Group is headquartered in Munich, Germany. It is a leading global producer and distributer of concrete and worksite technology, in addition to compact construction equipment. The company has more than 50 affiliates, more than 140 sales and service stations and more than 12,000 sales and service partners spanning the entire globe.