Agco Power: “The development is cyclical, as it always has been. That’s why the economic stagnation doesn’t cause worries.”
29.4.2015
Our field is experiencing a lull after seven years of continuous growth since agricultural industry is at a clearly lower level than before, even globally speaking. The general view is that 2015 and 2016 will be somewhat weaker, after which we will return to the normal level. This how it has always been and will always be, which is why the slower period is not really a concern. This cycle is a core element of the industry.
However, there is a strong trend of growth in the production quantities of agricultural products since China, for example, is consuming more meat and poultry, which requires more products and increases the demand for agricultural machines. The AGCO Group is one of the largest manufacturers of tractors and agricultural machines in the world, so there is plenty of demand for the engines manufactured in the Linnavuori district of Nokia. People need to eat every day, now and in the future – this is something we can always count on.
During the slow period, we must work for the future and development new and better products. Currently, we can concentrate on improving our own productivity and processes.
Two years ago, we made an investment in the Linnavuori district in Nokia, which was exceptionally sizeable in Finnish production industry. We expanded our factory, and production in the new 6,600 m2 assembly hall began in 2013. The investment valued at €25 million substantially increased the capacity of the factory and helped us to develop our processes and manufacture new products. This was a big step forward for us.
The Tampere city region is an ideal location for us: a growing and vibrant area with university-level education and young residents that is also appealing to experts in the field. Many come here to study and stay for work. Finding the right recruits is not a given in every location: the Helsinki metropolitan area has its own limitations such as expensive housing, and towards the north the small size of the municipalities presents problems. Our experts often settle in the area with their families, so the opportunities for the spouse to find employment also affect the decision. The Tampere city region is an optimal location compared to many others.
AGCO Power is an engine factory that has operated in Linnavuori in the town of Nokia for over 70 years – it is one of the leading manufacturers of diesel engines in the world. It currently employs about 800 people, and its turnover in 2014 was €248 million. A significant portion, about 95%, of the turnover is attributable to direct and particularly indirect export. Many of the leading tractor brands, agricultural machines and work machines feature an AGCO Power engine.
Read the article in Finnish >