AGCO Starts Local Production in North Africa

  AGCO Starts Local Production in North Africa

              First Massey Ferguson tractors produced in Algeria

Business Wire

DULUTH, Ga. -- December 18, 2012

AGCO, Your Agriculture Company (NYSE:AGCO), a worldwide manufacturer and
distributor of agricultural equipment, held a ceremony yesterday to mark the
production of the first Massey Ferguson tractor produced by AGCO’s joint
venture in Constantine, Algeria. “Together with our Algerian partners, we are
pleased to produce Massey Ferguson tractors locally in Africa. This is a
significant step in our long term growth strategy for the African continent,”
stated Martin Richenhagen, AGCO’s Chairman, President and Chief Executive
Officer. “AGCO is committed to grow its presence within Africa by investing in
local manufacturing, distribution infrastructure and new training sites. We
have committed to invest US$ 100 million in Africa over the coming years.”

The new joint venture in Algeria for the production of Massey Ferguson branded
tractors was established earlier this year. AGCO entered an agreement with two
local partners – L’Entreprise Publique Economique de Production de Tracteurs
Agricoles (EPE ETRAG Spa) and L’Entreprise Publique Economique de
Commercialisation de Matériels Agricoles (EPE PMAT Spa) – to form the Algerian
Tractors Company of which AGCO owns 49%. The new joint venture is based in El
Khroub, close to Constantine, and produces Massey Ferguson tractors for sale
into the domestic Algerian market. The production has recently started and the
ceremony was held to mark the occasion of the first Massey Ferguson tractor to
leave the factory.

“Africa has tremendous growth potential in the agricultural equipment sector
and our mission is to provide agricultural solutions for African farmers,”
commented Nuradin Osman, AGCO’s Director for Africa & Middle East. “As
Africa’s population is set to rise to two billion by 2050, the need for
mechanization and training, service and support for small and medium-scale
farmers has never been greater.” AGCO’s technology-driven products will
contribute to the modernization of the African agricultural market. “The joint
venture with our Algerian partners strengthens AGCO’s base of resources in
Africa,” adds Osman. “The local manufacturing footprint will allow AGCO to
better serve Algerian customers with high quality products and services and
will accelerate the development of AGCO’s business in North Africa.”

With over 50 years of experience in Africa through its Massey Ferguson tractor
brand, AGCO already leverages alliances with governments, foreign investors
and donors to improve agricultural practices in Africa. AGCO also plans to
fund the development of Future Farms and Training Centers throughout Africa
that will allow local farmers and dealers to be trained on new farming
technology appropriate to their needs.

ABOUT AGCO

AGCO, Your Agriculture Company, (NYSE: AGCO), is a global leader focused on
the design, manufacture and distribution of agricultural machinery. AGCO
supports more productive farming through a full line of tractors, combines,
hay tools, sprayers, forage equipment, tillage, implements, grain storage and
protein production systems, as well as related replacement parts. AGCO
products are sold through four core machinery brands, Challenger®, Fendt®,
Massey Ferguson® and Valtra® and are distributed globally through 3,100
independent dealers and distributors in more than 140 countries worldwide.
Retail financing is available through AGCO Finance for qualified purchasers.
Founded in 1990, AGCO is headquartered in Duluth, GA, USA. In 2011, AGCO had
net sales of $8.8 billion.

Safe Harbor Statement

Statements which are not historical facts, including expectations regarding
the development and sales of products in this region, are forward-looking and
subject to risks that could cause actual results to differ materially from
those suggested by the statements. These risks include possible declines in
demand for products as a result of weather, demand and other conditions that
impact farm income, actions by producers of competitive products, and the
general risks attendant to acquisitions. Further information concerning these
and other factors is included in AGCO’s filings with the Securities and
Exchange Commission, including its Form 10-K for the year ended
December31,2011. AGCO disclaims any obligation to update any forward-looking
statements except as required by law.

Contact:

Stockheim Media
Rebecca Fabian, +1-646-415-8518
rf@stockheim-media.com
 
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