Deere completes purchase of Brazil company
It will provide expertise in sugar cane market
MOLINE, Ill. — Deere & Co. on Thursday said it has completed its acquisition of Auteq Telemática, an onboard software and computer company in Sao Paulo, Brazil.
The deal provides Moline, Ill.-based Deere additional specialization in the sugar cane market.
Deere created a joint venture with Auteq in 2009 to provide integrated technologies and solutions for sugar cane production.
The purchase of Auteq will give Deere further capability to help customers use the data produced by onboard computers in equipment used for planting, crop care and harvesting in sugar cane production.
“Because the sugar cane industry is vertically integrated, it is important for Deere to offer solutions to manage data captured by agricultural equipment to allow for the connection from the field to the sugar mill,” said Paulo Herrmann, president of John Deere Brasil.
While it will be wholly owned by Deere, the business will continue to operate under the Auteq brand name.
Deere offers two harvester models in Brazil for the sugar cane market. Customers in Brazil have used John Deere agriculture equipment for more than 60 years.
Deere entered Brazil by buying a 20 percent stake in a local machinery maker in 1979. It bought the rest of that company in 1999 and established John Deere Brazil.
In early October, Deere announced the layoff of nearly 10 percent of the workers at one of its four manufacturing plants in Brazil. Deere’s Horizontina facility builds harvesting and planting equipment and has a work force of about 1,800.
Deere said sales of agricultural machinery in South America are expected to decline 15 percent from last year’s totals.
“Faced with this scenario and despite all efforts, John Deere Brazil has had to adjust to the volatility of the Brazilian market,” the company said in a statement.