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AGCO Further expands its centre of Excellence

BEAUVAIS, France, January 16th 2019 – AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and solutions, today announces that it intends to further expand its Beauvais site.

The plans are part of Massey Ferguson’s long-term growth strategy that involves acquiring and transforming a neighbouring site, previously owned and operated by Froneri, which announced its closure on 10th October, 2018.

This proposed acquisition was announced at the opening ceremony of Beauvais 3, an 8ha site with a 30,000m² building that houses Massey Ferguson’s new logistics centre. Here, the two digit million euros investment has already created 103 new jobs. But this was only a first step.

The intended acquisition of the 15.7ha Froneri site, which includes 4.5ha of buildings, signals AGCO’s strong appetite for continued investment enabling Massey Ferguson to meet growing demand for its equipment. It will also support the integration of new activities through vertical integration, such as the re-integration of outsourced operations including pre-delivery inspections and a tractor customisation workshop.

At the same time it provides employment opportunities for a skilled workforce following the closure of the neighbouring Froneri plant.

Once the expansion plan is complete, the Massey Ferguson Centre of Excellence for Engineering and Manufacturing in Beauvais will cover a total area of 54ha and employ up to 2,500 people, including in its GIMA and AGCO Finance joint ventures.

This extra space will allow AGCO to roll out a range of new agricultural machinery that is a key part of the company’s growth plans. It will also keep suppliers close by to facilitate a more efficient ‘just in time’ approach to its production, which will help drive value across the manufacturing process. A more efficient site structure will ultimately drive greater value and AGCO’s ability to invest more in the site in the future.

Speaking at today’s opening ceremony of Beauvais 3, Massey Ferguson’s new logistics centre, Thierry Lhotte, Massey Ferguson’s Vice-President and Managing Director Europe and Middle East, said:

“The official opening of Beauvais 3 marks just one of the first milestones in ‘MF Growing Together 5’ - the brand’s five-year growth programme. Located immediately between the new Beauvais 3 Logistic Centre and the Main Site, the Froneri site presents opportunities for AGCO and Massey Ferguson to implement growth plans, previously limited by a lack of space.

“This project will create the conditions for the revitalisation of the area’s economic activity by creating new jobs, for among others, for Froneri Beauvais employees affected by its closure - following AGCO’s regular recruitment process.”

“More than €300 million has been invested in Beauvais in the past six years. Our growth strategy is gaining momentum and the proximity and availability of a skilled workforce makes the potential transaction even more compelling.”

With 14 new tractor ranges launched since 2015, and a further 14 to come by 2023, Massey Ferguson is meeting the diverse requirements of farmers who are looking to invest in state-of-the-art equipment. These new launches will enable customers to have an exciting and sustainable future in agriculture, while meeting the need for value in a more cost-conscious age, dominated by volatile commodity prices.

The single, unified Beauvais campus will encompass the full design, build, testing and manufacture of new models and it is the Company’s intention to ramp up the site’s production volumes to 18,000 tractors/ year to meet market demand.

The transaction will enable the complex to be reconceived as an enlarged centre of excellence for tractor Engineering and Manufacturing, providing the needed space to improve quality, accelerate research and roll out innovation from a single site. It will also enable the company to relocate Engineering and Purchasing activities which are currently in congested sites inside and outside our existing Beauvais complex.

“Massey Ferguson has been a world dominating tractor brand for more than 60 years – for as long as we have been manufacturing in Beauvais,” commented Martin Richenhagen, Chairman, President and Chief Executive Officer of AGCO Corporation.

“The local community and authorities in Beauvais, Agglo du Beauvaisis, Oise and Hauts-de-France have been a consistent source of support for AGCO and our status as the largest private employer in the region.”

“This is no coincidence. They have created a business-friendly environment that makes it possible for large international companies such as AGCO to invest in France, and we are delighted to announce our intention to consolidate our presence here. We will continue to invest in the region, which reflects the support we have received from Beauvais City, from la Communauté d'Agglomération du Beauvaisis, from Oise County, from Hauts de France Region and the French Government.”

“We are looking for an additional multimillion euros investment as we develop a cutting-edge industry 4.0 site which will add 200 new sustainable jobs to the already 100+ created with Beauvais 3. At the end this new investment phase AGCO will have created 300 new jobs for its local Beauvais community.. We intend Beauvais to become the Global Home of the Massey Ferguson Brand.”

“The official opening of Beauvais 3 marks just one of the first milestones in ‘MF Growing Together 5’ - the brand’s five-year growth programme."
“This project will create the conditions for the revitalisation of the area’s economic activity by creating new jobs, for among others, for Froneri Beauvais employees affected by its closure - following AGCO’s regular recruitment process.”
“Massey Ferguson has been a world dominating tractor brand for more than 60 years – for as long as we have been manufacturing in Beauvais.”

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