Deere Forms Joint Venture in China

August 22, 2000

Deere & Company has formed John Deere Tiantuo Company, Ltd., a joint venture tractor manufacturing operation between Moline, IL-based Deere & Company and the Tianjin Tractor Manufacturing Company based in Tianjin, China. John Deere Tiantuo (JDT) will manufacture and sell tractors for the China market in four basic models at 55, 60, 75 and 80 hp. Production is expected to be about 9,000 tractors annually. JDT is headquartered in Tianjin, China, a city of 9 million residents located about 100 miles southeast of Beijing.

The joint venture, 51% owned by Deere & Company, represents a $21 million joint investment. John Deere and the state-owned Tianjin Tractor Manufacturing Company first entered into as a technology licensing agreement in 1983.

"JDT brings together a leader in China's tractor market with John Deere's strength in world class standards of quality, productivity and technology development," said Robert W. Lane, president and chief executive officer of Deere & Company at opening ceremonies in Tianjin. "JDT will make a significant contribution to China's agriculture productivity and continued economic development," he added.