AGCO celebrated a groundbreaking ceremony for its African Master Parts Distribution Centre together with its South African distribution partner, Barloworld, in Johannesburg in May 2012. “Africa offers tremendous growth opportunities in the agricultural equipment sector,” said Martin Richenhagen, Chairman, President and CEO of AGCO. “AGCO is committed to growing its presence within Africa by investing in distribution infrastructure and new training sites. Our new warehouse will allow us to better serve our customers in Sub-Saharan Africa.”
The new AGCO Parts Distribution Centre will be located close to the O.R. Tambo International Airport in Johannesburg with optimal logistical connections. A wide range of up to 40,000 parts will be stocked locally to significantly improve order response times and machine uptime for AGCO’s African customers. “Investing in AGCO’s after-sales service infrastructure in Africa allows us to be closer to the market and provide better service levels to our local distribution partners and customers,” explained Hubertus Mühlhäuser, Senior Vice President, General Manager, Europe, Africa & Middle East.
“A continent like Africa has significant potential for growth in the agricultural sector. With 11 percent of the world’s arable land, much of which is uncultivated, Africa will benefit from modern, mechanized farming techniques,” continued Hubertus Mühlhäuser. “Overall, AGCO plans to invest up to $100m USD in its Africa business over the next few years. The new master parts warehouse in Johannesburg is a first step to improve our after-sales infrastructure for African markets.” AGCO’s technology-driven products will contribute to the modernization of the African agricultural market, and the local presence will allow AGCO to better serve African customers with high quality products and services.
With over 50 years of experience in Africa through its Massey Ferguson tractor brand, AGCO already leverages alliances with governments, foreign investors and donors to improve agricultural practices in Africa. AGCO plans to fund the development of Model Farms and Training Centers in Zambia, Ethiopia, Morocco and South Africa that will allow local farmers and dealers to be trained on new farming methods and technology.
The construction of AGCO’s African master parts warehouse will be completed by the end of 2012. In addition to supporting AGCO’s distributors in Southern Africa, AGCO Parts shipments to Barloworld’s dealer network will also be prepared from the new AGCO warehouse. The joint approach will allow Barloworld to offer an even better service to its customers due to the expanded range of locally stocked parts.