Deere Acquires Deere-Hitachi Factories Following Official Split

The Deere-Hitachi split is official.

To move forward with production of Deere-designed excavators, John Deere has acquired full ownership of three Hitachi joint-venture factories and has begun new license and supply agreements with Hitachi Construction Machinery.

The two companies ended their joint-venture manufacturing and marketing agreements on February 28. The dissolution of the joint venture was announced in August and was contingent upon regulatory approvals.

“As we launch this new chapter, our legacy of innovation continues,” said John Stone, president, John Deere Construction & Forestry Division and Power Systems. “Going forward, we can leverage technology developed for other product lines and production systems across the Deere enterprise and extend those advanced solutions to Deere-designed excavators, strengthening the entire product portfolio.

“We continue our mission to answer the fundamental need for smarter, safer and more sustainable construction so our customers can shape tomorrow’s world.”

The former joint-venture factories will continue to manufacture Deere-branded construction excavators and forestry equipment, and production of Hitachi-branded products will be discontinued. The locations will now be referred to as:

  • John Deere Kernersville, Kernersville, N.C.
  • John Deere Specialty Products, Langley, British Columbia, Canada
  • John Deere Brasil Escavadeiras, Indaiatuba, Brazil

Through a new supply agreement with Hitachi, Deere will continue to offer a full portfolio of excavators.

Deere’s marketing arrangement for Hitachi-branded construction excavators and mining equipment in the Americas has ended. Hitachi has assumed distribution and support of these products and has established an independent network of dealers. Deere dealers may continue to support their existing field population of Hitachi-branded excavators.

With the completion of this acquisition, John Deere now controls its excavator design, product and feature updates. Deere says the move will make it possible to more rapidly respond to customer requirements and integrate excavators with other Deere construction products.