John Deere and Wacker Neuson have entered into a strategic supply agreement for compact excavators.
John Deere says the agreement will help the company meet growing global demand for its machines. The supply agreement with Wacker Neuson is to initially provide compact excavators in China, Southeast Asia and Oceania.
The compact excavator models will range from 1.7 to 7.5 tons and are specifically designed and manufactured for customers in the growing Asia-Pacific marketplace.
According to John Deere, the objective of the partnership is long-term collaboration in key growth markets.
“In partnering with Wacker Neuson, John Deere is leveraging the experience and success of their innovative and strongly customer-focused products to help us further develop our position in the Asia-Pacific region,” said David Thorne, senior vice president of sales and marketing for John Deere Construction and Forestry.
“These excavators are purpose-built to meet the demands of customers, and will be John Deere branded and sold through John Deere dealers.”
While both companies are committed to a long-term strategic collaboration, the agreement will run for five years and may be renewed in five-year increments.
The initial rollout of four compact excavator models will begin in early 2019, and will predominantly be sourced from the new Wacker Neuson factory in Pinghu, China.
Service and support of these machines will be offered through the John Deere dealer network.
In January, Wacker Neuson started series production of mini excavators at its new factory in Pinghu. This sees Wacker Neuson enter the market as the trend toward more compact, smaller construction equipment rapidly gathers momentum in China.
Wacker Neuson Group is an international family of companies based in Munich, Germany. As a manufacturer of light and compact equipment globally, Wacker Neuson has more than 50 affiliates and 140 sales and service stations.