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John Deere & Kuhn Agree on Strategic Cooperation

20 May 2011
John Deere

GLOBAL - Deere & Company and Kuhn Group announced today that they are establishing a strategic cooperation.

The agreement enables Kuhn to manufacture John Deere- branded large square balers for John Deere customers in Europe, CIS, Northern Africa and the Near and Middle East (Deere's Region 2). John Deere will also acquire an intellectual property licence from Kuhn, so that John Deere can use the large square baler design worldwide and adapt it to customer requirements in other markets.

"This agreement allows us to expand John Deere's hay & forage product portfolio to better serve our dairy and livestock customers, as well as the contractor and commercial segments," says William F Norton, Agriculture & Turf Division Vice President, Global Hay & Forage Platform. "After an in-depth evaluation of the large square baler market, we determined that the Kuhn product would most effectively enable us to serve our customers in a timely manner with a solid, demonstrated solution, including Deere's normal after sales support."

As part of the agreement, Kuhn will be manufacturing John Deere branded large square balers within Region 2, while John Deere will be building large square balers outside Region 2. Subsequently, both companies will independently pursue design and product enhancements for large square balers to fulfill their customer requirements in diverse markets, and continue to compete with their individually branded large square balers worldwide.

"Our agreement with John Deere is the result of a long-standing mutual relationship in selected segments of the hay and forage business," says Michel Siebert, President and CEO of Kuhn Group. "Kuhn designs and manufactures high quality large square balers that are primarily sold in Europe today. This new agreement will enable Kuhn to increase its manufacturing capacity and efficiency, and continue to develop reliable large square baling solutions meeting the requirements of satisfied Kuhn customers worldwide."

The availability of products evolving from this strategic cooperation will be announced later this summer. Financial terms of the agreement were not disclosed.

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