American-owned Agco Power has invested over EUR 20 million to expand its diesel engine production plant located in the town of Nokia, western Finland. The new 6600 square metre assembly hall is located close to the company’s existing plant. The investment increases the annual production capacity of the factory from 38,000 to 50,000 engines.
Full production is starting during this quarter, creating 50-70 new jobs at the factory which already employs about 820 people. Esko Tomi, managing director of the factory, is optimistic about the growth of the business and believes that there is likely to be a further expansion of the factory at the same site in the future.
AGCO Power has been making diesel engines at its plant in Nokia for nearly 70 years and supplies the engines to many of the world’s leading manufacturers of tractors and other farm machinery. Soon the plant will be producing almost all the engines required by Valtra and Massey Ferguson.
Benefits from Finnish acquisition
AGCO took over the Nokia plant in 2003 as part of a EUR 600 million acquisition of Valtra, a global tractor and off-road engine manufacturer owned by the Finnish company Kone Corporation. Valtra is known for its strong engineering and technical skills in tractor and diesel engine manufacturing, making it possible to produce high-quality products in an efficient and expedited basis.
According to AGCO, the strategic and financial opportunities from the Valtra acquisition included access to Valtra’s Nordic and Latin American customers, a world class research and development department, and a quality source of engines that could be used with AGCO’s existing product lines.