AGCO invests EUR 70 million in AGCO Power Finland facility

AGCO, which specializes in the manufacture and distribution of agricultural equipment and precision ag technology, has announced it will invest EUR 70 million in AGCO Power’s Linnavuori engine plant in Nokia, Finland, to accelerate and support growth in sustainable product offerings.

AGCO Power’s Linnavuori plant in Nokia, Finland. (Photo: AGCO)

AGCO Power, which has been a part of AGCO since 2008, has manufacturing facilities in Finland, China, Brazil and Argentina. The Linnavuori plant, which employs 1,000 workers, currently has a production capacity of more than 50,000 diesel engines annually. The engines are used to power AGCO and other tractor brands, as well as ships, generators, pumps and power stations, AGCO Power noted.

In November 2023, the President of the Republic of Finland Sauli Niinistö recognized both AGCO Power and AGCO’s Valtra brand, which operates from Suolahti, with a long-term investment award. AGCO’s investments in the Linnavuori plant operations have totaled more than EUR 100 million over the past five years.

The latest investment will include the building of a clean energy laboratory to test fuel cells for alternative fuels and select electric drives that will reduce farmers’ fleet emissions. Additions will also include a training and visitor center, a production hall for machining cylinder heads and manufacturing components for automated continuously variable transmissions (CVTs), a paint shop and testing capabilities for remanufactured engines. The new buildings, which will total 11,000 sq. meters, will be completed throughout 2024 and 2025.

“We are investing in the future of clean energy, Linnavuori and, ultimately, AGCO. By adding production capacity and research capabilities, AGCO Power is building capabilities to better serve our workforce and all farmers who are sustainably feeding the world,” said Juha Tervala, managing director of AGCO Power.

The modern engine assembly hall is one example of AGCO’s recent large investments in Linnavuori. (Photo: AGCO)

In addition to diesel engines, AGCO is expanding its product technology portfolio by developing engines utilizing alternative fuels and various electrical solutions that reduce emissions. The new research laboratory in Linnavuori is a natural extension of AGCO Power’s product development responsibility, the company stated.

“The clean energy laboratory will house several cells for testing the combustion engines running on alternative fuels, as well as a range of electric solutions, such as hybrids, fuel cells and high-voltage battery technology,” said Tervala.

AGCO Power has remanufactured used engines at Linnavuori since 1990. The improvements in reman testing capabilities at the site will serve as part of AGCO’s global investments in remanufacturing. 

“The product improvements are based on the latest revision and the repaired, tested and painted engine is granted a full factory warranty,” Tervala noted. “The investments in our Linnavuori plant will allow us to grow our reman capabilities to serve global customers.”

AGCO is also centralizing manufacturing operations for transmission components at the site. The investments will allow the facility to expand the manufacturing of CVT components for the company’s tractor brands, with plans to produce more high-precision transmission components at this location.

“Currently, we produce approximately 1 million gear wheels and axles annually, but this number is expected to double after the investments,” said Tervala.

The new production hall will house a new machining line with a high level of automation for manufacturing the cylinder heads of AGCO Power CORE engines.