Production to Germany
Lely sells haymaking branch to full liner Agco
The Dutch family business Lely plans to transfer its production of haymaking equipment to full liner Agco sold. This allows the Maasland company to focus on the dairy segment: milking robots and other innovations.
Agco is mainly concerned with the technology behind the Lely machines. Agco already has Fella in its package, with a lot of overlapping technology. The role that the production of Lely machines now plays will therefore be limited in 2018.
31
March
For the time being, it is about the intention that Lely and Agco have expressed. When the acquisition is completed, Lely hopes to be able to expand its position in the field of automation within dairy farming. Agco would like to expand its haymaking branch to be a real full-liner. Before that, it already took steps two years ago. For example, Fendt and Massey Ferguson have their own haymaking line and presented their own Fendt dual-purpose wagon at the Agritechnica in 2015. That brand in particular is boosted with mowers, tedders and rakes.
Lely's haymaking branch is what the company has largely been built on since 1948. The construction of milking robots, among other things, eventually grew into a full-fledged additional branch. This includes mowers, tedders, windrowers, loader wagons and balers. The arable farming branch – for which Lely also gained worldwide fame – was sold to Peeters Landbouwmachines (Peecon) in 2001, which continues to operate under the name Tulip to this day.
The press release states that Lely started making a strategic analysis some time ago. This showed that change was necessary to remain successful. 'We want to continue to focus on our role as an innovator in the field of robotization, sensors and data systems,' says director Alexander van der Lely. 'During the past fifteen years, this product group has been the most successful and has plenty of potential for the future.'
'The acquisition of Lely's haymaking division helps us to strengthen the relationship with dealers and customers worldwide', says Agco's CEO Martin Richenhagen. This does mean that the production of machines in Maassluis (mowers, tedders and rakes) will be phased out. It is expected to stop altogether after 31 March 2018. All 95 employees will remain with Lely, or temporarily join Agco during the acquisition. A permanent solution is still being sought for the future.'
Agco will take over the two production sites for balers and loader wagons in Germany, including employees. Agco also takes over part of the sales organization. Lely says it wants to treat its employees with respect. To this end, consultations are being held with the works council on how exactly the reorganization will take place.
Lely has a total of more than 2.000 employees. It operates in more than 60 countries. Especially in the field of milking robots and other robotics. We mainly know the American company Agco as the parent company of the brands Fendt, Massey Ferguson, Challenger and Valtra. It has existed since 1990 and sells agricultural machinery in more than 150 countries. Revenue in 2016 was $7,6 billion. The amount of money involved in the acquisition has not been disclosed by either company.
Niels van der Boom
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