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AGCO will transfer its high horsepower, wheeled tractor assembly for tractors sold in North America from its tractor manufacturing facility in Beauvais, France, to AGCO's operations in Jackson, Minnesota. "The expansion of high horsepower tractor production will include an extension of the assembly line and investments in advanced material handling systems to efficiently deliver parts and material to the assembly line," said Robert B. Crain, Senior Vice President and General Manager AGCO North America. "In addition, AGCO will build a state-of-the-art visitor center in Jackson to significantly enhance the experience for our customers and dealers." In total, the existing plant will be expanded by about 75,000 square feet. Plans are to begin assembly of AGCO's high horsepower Challenger MT600C Series tractors sold in the North American market in late 2011.
Frequently Asked Questions
What does the planned expansion include?
The 75,000 square feet expansion of the Jackson, Minnesota, facility includes a 16,000-square-foot extension of the current assembly line and incorporation of a 42,000-square-foot kitting center – an advanced system to deliver parts and material to the assembly line – which will produce Challenger high horsepower wheeled row-crop tractors. In addition, the expansion will include a 17,000-square-foot state-of-the-art visitor center.
What is the history of AGCO as an employer and manufacturer operating in Jackson, Minnesota?
In 2001, AGCO purchased Ag-Chem Equipment Company, Inc., a business whose history began in Jackson in 1963 when the company was founded by Al McQuinn. The business started as a distributor of specialized spray equipment used by the agricultural industry. Its first product was manufactured in 1967, and land was purchased at the current location in September of 1968 for construction of a 25,192-square-foot manufacturing facility, which was completed in 1970. Additional expansions were completed in 1974, 1994, and 1995. Today, AGCO is Jackson’s largest employer with approximately 900 professional, support, and skilled manufacturing positions.
What is the population of Jackson and the surrounding community?
As of July, 2009, the population of the city of Jackson was approximately 3,300, and the population of Jackson County, including the town of Jackson, was approximately 10,700 (29% urban, 71% rural).
What economic impact will expansion of the AGCO Jackson facility have on the city of Jackson and the local economy?
There are three areas of economic impact related to the expansion of the Jackson facility, according to economic impact studies completed by the Minnesota Department of Employment and Economic Development (DEED).
- Construction – In 2011, an estimated $6.2 million in construction and renovation investment will result in 45 construction industry jobs along with another 9 jobs created related to building supplies and professional services such as architects and engineers. Construction will stimulate $2.214 million in Gross Regional Product (GRP or value-added) and $1.689 million in labor income within the local economy.
- Daily operations – The expansion is projected to result in 100 manufacturing jobs at the facility, contributing $15.110 million to the local economy with a total labor income of $8.234 million per year. Nearly 80 additional jobs in industries and services outside of AGCO are expected as an indirect result of the expansion.
- Welcome center visitors – It is estimated that as many as 10,000 individuals will tour the visitor’s center each year. Spending by these guests from out of state and around the world is expected to increase the Jackson County economy by $2.264 million and create an estimated 95 jobs in industries supporting travel and visitor services. Food and beverage establishments, hotels and motels, and amusement and recreational businesses are expected to account for 86 percent of the total increase in jobs. Personal income of $1.356 million and nearly $5.5 million in gross sales are projected.
What types of agricultural equipment will be produced as a result of this investment?
Challenger MT600C Series high horsepower row-crop tractors will be manufactured at the Jackson facility. These series include models featuring AGCO’s exclusive e3 selective catalytic reduction (SCR) clean-air technology. Additional models may be added as early as 2012.
What is the timeline for this expansion?
The manufacturing expansion is scheduled for completion in late 2011. The first tractors are expected to roll off the line before the end of the year.
When will the visitor center be completed?
Plans for the visitor’s center have not been finalized, but AGCO expects to complete the facility by the end of the year. The projected 17,000-square-foot facility is intended to host both local and international visitors.
What products are currently manufactured in the Jackson, Minnesota facility?
Products manufactured at the Jackson, Minnesota, production facility include Challenger® MT700C and MT800C track tractors, as well as Challenger MT900C articulated 4-wheel-drive tractors; TerraGator® high-flotation applicators; RoGator® high-clearance applicators; and SpraCoupe® high-clearance self-propelled row-crop sprayers.
Why was the Jackson facility chosen to manufacture high horsepower wheeled row-crop tractors for the North American market?
For nearly 50 years, the community of Jackson has been involved in the manufacture and distribution of farm equipment. Not only does Jackson and the surrounding community provide a hard-working, experienced, and committed labor force, it is a manufacturing-friendly community with the infrastructure, access to transportation, and support industries needed to successfully expand production to the levels required to meet the demands of today’s marketplace.
What role did local organizations have in securing AGCO’s decision to expand the Jackson facility?
The Jackson Economic Development Corporation (http://www.cityofjacksonmn.com/economicdevelopment) actively led an initiative to secure financial incentives, jobs training support, and other incentives instrumental in the decision to expand the Jackson manufacturing facility. Organizations involved include:
- Jackson Economic Development Corporation
- Minnesota Department of Employment and Economic Development
- Jackson Area Chamber of Commerce
- City of Jackson
- Minnesota Department of Agriculture
- Federated Rural Electric Association
- Southwest Initiative Foundation
- Jackson County
- Workforce Development Centers
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