Tractor manufacturer AGCO speeds production after outages

JUNE 30, 2020
AGCO tractors

Tractor manufacturer AGCO said its plants are in full swing, but warned that the spread of the new coronavirus in South and North America could still cause more downtime.

All units operate near full capacity, and AGCO accelerates production after closing plants in Europe and South America, chief operating officer Eric Hansotia said. Although factories are operating "faster and stronger", Latin America has become an epicenter, and cases are increasing again in parts of North America.

"We are not out of the woods yet," Hansotia said in a video interview. The virus appears to be under control in China, Asia and Europe, but the situation is unstable in parts of North America and throughout Latin America, from Mexico to Argentina, he said. "We are carefully monitoring."

AGCO had to close factories in countries like Argentina, Italy, Germany, France, and Finland earlier this year, when the virus spread. Although the manufacture of agricultural equipment was considered essential in most countries, the company has reduced capacity, as social isolation measures have led many of its suppliers to suspend operations.

The Duluth, Georgia-based company has found ways to obtain the necessary parts and is now trying to meet customer demand in Europe and South America, Hansotia said. With the reopening of economies, factories can operate with greater capacity than at any other time in the pandemic.

"We are in recovery mode" in Europe and South America, Hansotia said, adding that he was "quite satisfied" with demand in Europe, which represents 60% of AGCO's sales. North America represents 15% and South America 10%.

Source: Fenabrave

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