This proposed acquisition was announced at the opening ceremony of Beauvais 3, an 8ha site with a 30,000m² building that houses Massey Ferguson’s new logistics centre. Here, the two digit million euros investment has already created 103 new jobs.
The intended acquisition of the 15.7ha Froneri site, which includes 4.5ha of buildings, signals AGCO’s strong appetite for continued investment enabling Massey Ferguson to meet growing demand for its equipment. It will also support the integration of new activities through vertical integration, such as the re-integration of outsourced operations including pre-delivery inspections and a tractor customisation workshop.
At the same time it provides employment opportunities for a skilled workforce following the closure of the neighbouring Froneri plant.
Once the expansion plan is complete, the Massey Ferguson Centre of Excellence for Engineering and Manufacturing in Beauvais will cover a total area of 54ha and employ up to 2,500 people, including in its GIMA and AGCO Finance joint ventures.
This extra space will allow AGCO to roll out a range of new agricultural machinery that is a key part of the company’s growth plans. It will also keep suppliers close by to facilitate a more efficient ‘just in time’ approach to its production, which will help drive value across the manufacturing process. A more efficient site structure will ultimately drive greater value and AGCO’s ability to invest more in the site in the future.
Speaking at the opening ceremony of Beauvais 3, Massey Ferguson’s new logistics centre, Thierry Lhotte, Massey Ferguson’s Vice-President and Managing Director Europe and Middle East, said:
“The official opening of Beauvais 3 marks just one of the first milestones in ‘MF Growing Together 5’ – the brand’s five-year growth programme. Located immediately between the new Beauvais 3 Logistic Centre and the Main Site, the Froneri site presents opportunities for AGCO and Massey Ferguson to implement growth plans, previously limited by a lack of space.
“This project will create the conditions for the revitalisation of the area’s economic activity by creating new jobs, for among others, for Froneri Beauvais employees affected by its closure – following AGCO’s regular recruitment process.”
“More than €300 million has been invested in Beauvais in the past six years. Our growth strategy is gaining momentum and the proximity and availability of a skilled workforce makes the potential transaction even more compelling.”