MOLINE, Ill. (AP) -- Deere & Co. is set to build its second tractor factory in India, breaking ground on a site in Dewas.
The farming equipment company has been involved with India for some time, having sold equipment in the country about 60 years ago.
Deere said Thursday that the new factory will build small agricultural tractors sold in India and for export to other nearby markets. Deere is spending $80 million on the facility and says it may house as many as 1,000 employees.
"John Deere products have been well accepted by customers in India and our investment in this new factory is a direct result of that success," Chairman and CEO Samuel Allen said in a statement.
Deere also said that full production should start on combines at a factory in Sirhind later this month. This was the company's first factory in India, with its construction started in October 2010. The facility may eventually employ about 300 workers.
In November Deere reported that its fourth-quarter net income rose 46 percent on strong sales of its farm equipment.
Shares of Deere & Co., based in Moline, Ill., dropped $1.05 to $83.45 in morning trading.
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