Deere & Co. announced plans to invest approximately $32 million to expand its production capacity in Orenburg, Russia. Moline, Ill.-based Deere said it has purchased and will renovate a factory in the city and move existing operations in Orenburg to the new facility.Why? It could be because it is less expensive to produce in other countries. There once was a time when we wanted to raise everyone's standard of living. The reality is that we are now lowering our standard to compete.
"We believe Russia will continue benefiting from demographic and macroeconomic trends that require increased food production from global agriculture," said Mark von Pentz, president of John Deere's Agricultural & Turf Division. "Russia has the agronomic potential to become a pan-Eurasian breadbasket."
The expansion project will increase John Deere's available manufacturing space in Orenburg by 600%, the company noted.
Have you gotten a raise lately? Are all the old manufacturing plants in your city full of workers, in full production, and running three shifts? Some choose to dream on and expect these jobs to come back...they will not.