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€54 Million Investment in AGCO Power's Plant

1. AGCO invests €54 million in new production facilities in Finland. 2. Expanded capacity aids sustainable agricultural practices and circular economy efforts. 3. Linnavuori plant will double engine remanufacturing output to 2,500 annually. 4. Investment enhances AGCO's role as a leader in power generation technologies. 5. New facilities will support Fendt, Massey Ferguson, and Valtra tractor brands.

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Why Bullish?

The investment in production facilities indicates strong growth potential and innovation. Historical examples show that similar expansions have led to positive stock performance.

How important is it?

The article discusses strategic growth and technological investments, which are crucial for AGCO's competitiveness and market position. These factors directly affect AGCO’s business performance and investor perception.

Why Long Term?

This expansion will position AGCO well for future market demand and sustainability trends. Previous investments in capacity have improved long-term profitability significantly.

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New Production Capacity and a Stronger Role for the Circular Economy, /PRNewswire/ -- AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, announced that its AGCO Power™ division is opening new production facilities in Linnavuori, Finland, strengthening the competitiveness of manufacturing and highlighting the importance of the circular economy in modern power generation. The investment, valued at €54 million, is part of AGCO Corporation's previous €70 million commitment to the Linnavuori engine plant. AGCO Power’s Linnavuori factory in Finland, expanded with a €54 million investment, now features state-of-the-art machining and remanufacturing facilities. The site leads in sustainable power generation and circular economy practices, supporting farmers worldwide with innovative engine solutions. Image shows a view of the facility's machining hall. Factory remanufacturing of engines requires strong expertise, as each engine is assembled entirely by a single technician. The new facilities include a state-of-the-art machining hall for manufacturing Continuously Variable Transmission (CVT) components and cylinder heads for AGCO Power's latest CORE engine. The expanded remanufacturing area increases the plant's capacity to produce remanufactured engines. AGCO Power is part of AGCO Corporation. The Linnavuori plant manufactures engines for AGCO's world leading tractor brands – Fendt®, Massey Ferguson® and Valtra®. AGCO's Global Center of Expertise in Finland "This machining investment strengthens Linnavuori's role as AGCO's global center of expertise for engines. We are investing in cutting-edge production technology and sustainable solutions that support farmers around the world," says Kelvin Bennett, Senior Vice President of Engineering at AGCO.Linnavuori, already Finland's largest transmission gear manufacturing site by volume, has expanded its capacity with the addition of 5,600 square meters of new production space.Remanufacturing – Circular Economy in Practice for Over Half a Century Stefan Caspari, Senior Vice President of Customer Experience and Business Effectiveness at AGCO, emphasizes that the remanufacturing expansion supports the company's long-term strategy and Farmer First approach."Farmers value total cost of ownership. This expansion enables AGCO to better support them not only with new equipment investments but also with maintaining existing machinery through more cost-effective remanufacturing solutions," Caspari says.AGCO Power has been refurbishing engines for over 50 years, with systematic remanufacturing starting in 1990. Today, over 1,000 engines are remanufactured annually, and with the new facilities, the maximum capacity will reach 2,500 engines per year. "Remanufactured engines extend the lifespan of machines and allow up to 80% of the engine's mass to be reused, including all cast iron components. This results in a much lower carbon footprint compared to manufacturing a new engine," explains Jussi Rinne, Director of Quality and Aftermarket.In addition to remanufactured engines, Linnavuori also produces gas engine blocks and marine engines.New investments support the development of sustainable power generation In 2024, AGCO Power also opened a clean energy laboratory in Linnavuori, where future lower carbon engine technologies are researched and tested. The newly completed machining hall and remanufacturing expansion complement the Linnavuori site, strengthening AGCO Power's position in sustainable power generation solutions.Fendt, Massey Ferguson and Valtra are registered trademarks of AGCO. AGCO Power is a trademark of AGCO.About AGCOAGCO (NYSE: AGCO) is a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology. AGCO delivers value to farmers and OEM customers through its differentiated brand portfolio including leading brands Fendt®, Massey Ferguson®, PTx and Valtra®. AGCO's full line of equipment, smart farming solutions and services helps farmers sustainably feed our world. Founded in 1990 and headquartered in Duluth, Georgia, USA, AGCO had net sales of approximately $11.7 billion in 2024. For more information, visit www.agcocorp.com.  About AGCO Power AGCO Power is one of the world's leading developers and manufacturers of engines for off-road machines. We produce engines for well-known tractor brands such as Fendt, Valtra, and Massey Ferguson. In addition to these, AGCO Power engines are used in other work machines, including forestry equipment. Production facilities are located in Finland, China, Brazil, and Argentina. The Linnavuori plant has been operating for over 80 years and is a subsidiary of AGCO Corporation.SOURCE AGCO Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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