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John Deere shifting southern African focus

Apr 19 2012 17:21 I-Net Bridge

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Johannesburg - Exponential growth in Sub Sahara African markets has prompted agricultural machinery company John Deere to shift its focus and embark on "significant expansion projects", according to regional MD Len Brand.

Brand, MD of John Deere Sub Sahara Africa, said that the company's re-focus began in 2005, when it ceased all manufacturing and became dedicated solely to sales and marketing, deciding to import John Deere products manufactured at 100 facilities worldwide.

"Then, in 2009, John Deere SA assumed responsibilities for sub-Sahara Africa, a region with plenty of growth potential - which has seen the company enter into significant expansion projects," he said.

As John Deere Sub Sahara Africa, the company now imports all of its products from its global network of factories, providing continued support to its dealer network and ultimately the end user. Brand said that this had given the organisation "a distinct competitive advantage".

The focus was now on "making sure they have parts and technical capabilities to support products, dealers and customers", he said.

While John Deere has long had a parts warehouse in SA, quicker than expected market growth in the region has made expansion necessary.

As a result, the company has made a R150m investment in a new parts warehouse close to OR Tambo International Airport.

The warehouse will be three times larger than the existing facility with 33% greater storage ability. This is intended to support the growing equipment sales, which will stimulate the need for parts and technical support.
southern africa  |  expansion
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