AGCO Commences Consultations Regarding Future Combine Harvester Production

AGCO Corporation announced today that it is entering into consultations with its Randers based employees regarding the proposed closure of its harvesting equipment operations in Denmark in 2010.

The proposals include the continuation of assembly operations until mid next year when it is anticipated they will be transferred to AGCOs Joint Venture harvesting manufacturing facility in Breganze, Italy.

Gary Collar, Senior Vice President, General Manager AGCO EAME and ANZ said,

It is with regret that I have to make todays announcement. We are proud of the workmanship, quality and professional attitude of our Randers workforce and everything they have achieved over many years.

In the long term, the operation of two separate combine plants in Western Europe is not practical. As we move forward with our product development plans and strategies for growth of our harvesting business it is important that we also benefit from the economies of scale, efficiency and increased competitiveness that this consolidation will bring.

AGCO acquired a 50% stake in Laverda S.p.A from the Italian ARGO Group in June 2007.  Laverda S.p.A, based in Breganze, Northern Italy, has produced combine harvesters for over 50 years and agricultural machinery and equipment since 1873. Today it operates one of the most modern and efficient harvesting machinery production sites in Europe. The Randers design eight walker high productivity combines and the new concept hybrid combine perfectly complement the five and six walker combines manufactured at Breganze.

Mr. Collar continued, We are committed to providing our Randers based employees with the very best support to ensure their employment through until mid 2010 and the best opportunity to obtain employment thereafter.