€54 Million Investment in AGCO Power's Plant

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AGCO (NYSE: AGCO) announced a €54 million investment in its AGCO Power division's Linnavuori, Finland plant, part of a larger €70 million commitment. The investment includes a new state-of-the-art machining hall for manufacturing CVT components and cylinder heads for the CORE engine, along with an expanded remanufacturing facility.

The expansion adds 5,600 square meters of production space to Finland's largest transmission gear manufacturing site. The remanufacturing capacity will increase from the current 1,000 engines annually to 2,500 engines per year. The facility supports sustainability by allowing up to 80% of engine mass to be reused, significantly reducing carbon footprint compared to new engine production.

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Manufacturing and Sustainability Expert

AGCO's €54M investment strengthens manufacturing capabilities while doubling down on circular economy through expanded remanufacturing.

AGCO's €54 million investment in its Linnavuori, Finland engine plant represents a significant enhancement of the company's manufacturing infrastructure and sustainability initiatives. The capital allocation delivers two strategic advantages: advanced production capabilities and expanded circular economy operations.

The investment includes a new machining hall for Continuously Variable Transmission components and cylinder heads for their latest CORE engine technology. This positions the Linnavuori facility as AGCO's global center of expertise for engines, reinforcing vertical integration in their supply chain for premium tractor brands including Fendt, Massey Ferguson, and Valtra.

Most notable is the expansion of remanufacturing capabilities, which will increase capacity from 1,000 to 2,500 engines annually—a 150% increase. This remanufacturing process allows up to 80% of an engine's mass to be reused, significantly reducing the carbon footprint compared to new production. The facility has been refurbishing engines for over five decades, with systematic remanufacturing processes in place since 1990.

The expansion adds 5,600 square meters of production space to what's already Finland's largest transmission gear manufacturing site by volume. This complements AGCO Power's clean energy laboratory opened earlier in 2024, creating an integrated facility focused on both current production efficiency and future lower-carbon technologies.

For agricultural equipment manufacturers, this type of vertical integration in powertrain components provides greater control over quality, supply chain resilience, and the ability to differentiate through proprietary technology. The dual focus on advanced manufacturing and remanufacturing capabilities demonstrates a balanced approach to both innovation and sustainability.

New Production Capacity and a Stronger Role for the Circular Economy

DULUTH, Ga., Sept. 25, 2025 /PRNewswire/ -- AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology, announced that its AGCO Power™ division is opening new production facilities in Linnavuori, Finland, strengthening the competitiveness of manufacturing and highlighting the importance of the circular economy in modern power generation. The investment, valued at €54 million, is part of AGCO Corporation's previous €70 million commitment to the Linnavuori engine plant.

We are investing in cutting-edge production technology and sustainable solutions that support farmers around the world.

The new facilities include a state-of-the-art machining hall for manufacturing Continuously Variable Transmission (CVT) components and cylinder heads for AGCO Power's latest CORE engine. The expanded remanufacturing area increases the plant's capacity to produce remanufactured engines.

AGCO Power is part of AGCO Corporation. The Linnavuori plant manufactures engines for AGCO's world leading tractor brands – Fendt^®, Massey Ferguson^® and Valtra^®.

AGCO's Global Center of Expertise in Finland 
"This machining investment strengthens Linnavuori's role as AGCO's global center of expertise for engines. We are investing in cutting-edge production technology and sustainable solutions that support farmers around the world," says Kelvin Bennett, Senior Vice President of Engineering at AGCO.

Linnavuori, already Finland's largest transmission gear manufacturing site by volume, has expanded its capacity with the addition of 5,600 square meters of new production space.

Remanufacturing – Circular Economy in Practice for Over Half a Century 
Stefan Caspari, Senior Vice President of Customer Experience and Business Effectiveness at AGCO, emphasizes that the remanufacturing expansion supports the company's long-term strategy and Farmer First approach.

"Farmers value total cost of ownership. This expansion enables AGCO to better support them not only with new equipment investments but also with maintaining existing machinery through more cost-effective remanufacturing solutions," Caspari says.

AGCO Power has been refurbishing engines for over 50 years, with systematic remanufacturing starting in 1990. Today, over 1,000 engines are remanufactured annually, and with the new facilities, the maximum capacity will reach 2,500 engines per year. 

"Remanufactured engines extend the lifespan of machines and allow up to 80% of the engine's mass to be reused, including all cast iron components. This results in a much lower carbon footprint compared to manufacturing a new engine," explains Jussi Rinne, Director of Quality and Aftermarket.

In addition to remanufactured engines, Linnavuori also produces gas engine blocks and marine engines.

New investments support the development of sustainable power generation 
In 2024, AGCO Power also opened a clean energy laboratory in Linnavuori, where future lower carbon engine technologies are researched and tested. The newly completed machining hall and remanufacturing expansion complement the Linnavuori site, strengthening AGCO Power's position in sustainable power generation solutions.

Fendt, Massey Ferguson and Valtra are registered trademarks of AGCO. AGCO Power is a trademark of AGCO.

About AGCO
AGCO (NYSE: AGCO) is a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology. AGCO delivers value to farmers and OEM customers through its differentiated brand portfolio including leading brands Fendt®, Massey Ferguson®, PTx and Valtra®. AGCO's full line of equipment, smart farming solutions and services helps farmers sustainably feed our world. Founded in 1990 and headquartered in Duluth, Georgia, USA, AGCO had net sales of approximately $11.7 billion in 2024. For more information, visit www.agcocorp.com.  

About AGCO Power 
AGCO Power is one of the world's leading developers and manufacturers of engines for off-road machines. We produce engines for well-known tractor brands such as Fendt, Valtra, and Massey Ferguson. In addition to these, AGCO Power engines are used in other work machines, including forestry equipment. Production facilities are located in Finland, China, Brazil, and Argentina. The Linnavuori plant has been operating for over 80 years and is a subsidiary of AGCO Corporation.

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SOURCE AGCO Corporation

FAQ

How much is AGCO investing in its Linnavuori, Finland plant in 2025?

AGCO is investing €54 million in the Linnavuori plant, part of a larger €70 million total commitment to the facility.

What is the remanufacturing capacity expansion at AGCO Power's Finland facility?

The remanufacturing capacity will increase from 1,000 engines to 2,500 engines annually at the Linnavuori facility.

How does AGCO's engine remanufacturing process contribute to sustainability?

AGCO's remanufacturing process allows up to 80% of engine mass to be reused, including all cast iron components, resulting in a significantly lower carbon footprint compared to new engine production.

What brands will benefit from AGCO Power's Linnavuori plant expansion?

The plant manufactures engines for AGCO's tractor brands including Fendt, Massey Ferguson, and Valtra.

How much additional production space is being added to AGCO's Linnavuori facility?

The expansion adds 5,600 square meters of new production space to the Linnavuori facility, which is Finland's largest transmission gear manufacturing site by volume.