A new partnership between Munich, Germany-based Wacker Neuson Group
and John Deere Construction & Forestry Company
, a subsidiary of Moline, Illinois-based Deere & Company
, will have Wacker Neuson design and manufacture mini and compact excavators at its Menomonee Falls facility, located at N92 W15000 Anthony Ave.
Wacker Neuson is a manufacturer of construction equipment and compact machines for concrete and construction site technology. The company has entered into a long-term exclusive OEM supply agreement that covers mini and compact excavators weighing less than 5 metric tons, including battery-powered excavators. The excavators will also be manufactured at Wacker Neuson’s Linz, Austria facility.
The Wacker Neuson Group plans to invest an amount in the low double-digit million Euro range to expand production capacity, according to a news release. A representative with the company was not immediately available for further comment on this investment Thursday.
The agreement signals a rebound for Wacker Neuson, which announced plans to lay off 186 workers at its Menomonee Falls facility in 2020,
citing a 38% drop in revenue from its Americas region during the first half of the year.
“This agreement with John Deere ideally complements our market and employee growth strategies for the Americas region,” said Gert Reichetseder,
president and North America CEO at Wacker Neuson. “In particular, we are excited to manufacture excavators in the United States, for the United States. We already offer our customers excellent products under the Wacker Neuson brand and we will continue to place a strong focus on expanding our product portfolio for the North American market in the future. The cooperation with John Deere opens up additional sales channels for our high-quality mini and compact excavators and excellent employment opportunities for the community in southeast Wisconsin.”
The excavators will be distributed under the John Deere brand via John Deere’s global dealer network. The companies plan a phased introduction of models. The agreement will allow John Deere to purchase and incorporate design and technical IP provided by Wacker Neuson, adapting the information to meet its own manufacturing and innovation requirements. The excavator models will be produced and launched on the market exclusively by John Deere, while Wacker Neuson will independently continue to develop, produce, and distribute its own 5-9 metric ton excavators under its own brand.
“We are very much looking forward to adding another layer to our growth strategy through this OEM agreement with John Deere for mini and compact excavators,” said Karl Tragl,
chairman of the executive board and CEO of Wacker Neuson. “Our relationship with John Deere has been a successful collaboration that spans many years in both the agricultural and construction sectors. Our product and manufacturing excellence complements John Deere’s established market reach in North America to open up outstanding business opportunities in the attractive mini and compact excavator market segment.”