AGCO sets eyes on Africa with its Challenger farm machinery business
Worldwide manufacturer and distributor of agricultural equipment, AGCO has announced it intends to develop its Challenger farm machinery business in Africa. This, being part of the company’s global strategy.
Challenger’s product offering includes high-performance tracked tractors and sprayers built by AGCO in North America for the African market. AGCO's Challenger Manufacturing Plant in Jackson, Minnesota has been the subject of multi-million dollar investments over the last five years including a 75,000 sq.ft (6967 m2) expansion to the tractor assembly line and the opening of a new visitors’ centre.
In 2013, a US$42 million upgrade and expansion was announced for engineering and manufacturing facilities to improve quality and increase production capacity. This upgrade included new component manufacturing facilities, new robotic welders, end-of-line quality testing, and new engineering and collaboration capabilities using virtual reality modeling in 3-D.
Challenger is a core brand for AGCO in Africa. The Company has plans to expand its product portfolio and utilise its established brand equity and Dealer network strength to propel further growth in the Africa region.
In Europe and Middle East (EME), where Challenger product has more of a niche market position, AGCO has proposed to integrate Challenger into the organisation of its Fendt operation from January 2018.
The proposed organisational change in EME is subject to formal consultation processes. As an evolution of AGCO’s Commercial and Market strategy, the proposed changes would be an important step in the Company’s approach to best serve its customers and Dealers across the widest range of farm enterprises and machinery applications.
The proposed changes in EME do not affect the Challenger business in Africa, Asia Pacific, North and South America where the brand is an important part of AGCO’s long-term go-to-market strategy and will continue to be one of AGCO’s core brands going forward.