Deere & Company said today it will build a new manufacturing facility in northeast China to support the increased demand for large agricultural products in the region. The factory will build mid- and large-sized tractors, sprayers, planters and harvesting equipment. Deere said its initial outlay for the project is approximately $80 million.

"The investment we are announcing today builds upon a solid foundation of John Deere working with the people of China toward our mutual success," said Samuel R. Allen, chairman and chief executive officer of Deere & Company. "Deere has a long history of serving the agricultural industry in China dating back to the 1970s when we were involved in the pilot farming project known as Friendship Farms."

The factory will be located in Harbin in the Heilongjiang Province, the same province where the company already operates John Deere Jiamusi Works, a key provider of harvesting equipment in China. The new factory will include the manufacturing technologies of metal fabrication, painting, and assembly of product.

"Our experience in China has shown us the important role of the Heilongjiang Province in agriculture," said David Everitt, president of Deere's Worldwide Agriculture & Turf Division. "Throughout the planning process, local officials have made this project an important priority."

Groundbreaking will take place in the third quarter of calendar year 2011 and the factory is expected to begin manufacturing products in late 2012. The facility will be Deere's seventh manufacturing location in China, including two joint ventures, all of which primarily serve the China market.