Global agricultural equipment manufacturer and distributor, AGCO (Your Agriculture Company), is building its African Master Parts Distribution Centre in Johannesburg, South Africa.
AGCO is working with South African distribution partner, Barloworld.
The facility is located close to the O.R. Tambo International Airport in Johannesburg with optimal logistical connections. It is billed to open at the end of this year.
AGCO’s technology-driven products are expected to contribute to the modernisation of the African agricultural market, which will allow the company to better serve African customers with high quality products and services.
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 better services to its customers due to the expanded range of locally stocked parts.
According to a statement released by the General Manager of AGCO Europe, Africa & Middle East companies, Hubertus Muhlhauser, “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.”
“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,” he said.
The Chairman, President and CEO of AGCO, Martin Richenhagen, also asserted, “Africa offers tremendous growth opportunities in the agricultural equipment sector.”
According to him, 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 facility when completed is expected to stock up to 40,000 parts to better order response times and machine up time for AGCO’s African customers.
Overall, the company plans to invest up to $100 million 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.
The company posted a fifty percent growth of about $121.2 million in the first quarter of the year as the demand for its products continue to rise globally.
Founded in 1990, AGCO is headquartered in Duluth, GA, USA. The company is recognised globally for its machineries like the Challenger®, Fendt®, Massey Ferguson® and Valtra®, which are distributed globally in more than 140 countries.
