Material shortages and constraints in the European supply chain caused by the Corona virus (Covid-19) situation has seen production significantly reduced or suspended at several of AGCO’s European facilities.
Details of the affected European plants has yet to surface, but the company’s numerous manufacturing sites in Europe include the tractor plants at Beauvais, France (Massey Ferguson), Marktoberdorf, Germany (Fendt) and Suolahti, Finland (Valtra). Additional production disruptions in other regions are expected over time.
AGCO boss Martin Richenhagen stresses that farm equipment is key to sustainable food production across all phases of the crop cycle and extends to animal protein production. “Demand for grain and protein will continue during this crisis, and AGCO will continue to prioritise support of our dealers and farmers to help promote food security,” he comments.
“At AGCO, we are focused on the safety of our employees, our dealers and the world’s farmers while doing our part to minimise the impact of this pandemic.”
In light of the Covid-19 outbreak and the lack of certainty of both the duration and magnitude of its impacts, the concern is withdrawing its first quarter sales, earnings and other guidance.
