Deere, Yanmar, and Kanzaki Launch Transmission Partnership

Officials with Deere & Company, Yanmar Diesel Engine Co., and Kanzaki Kokyukoki Manufacturing Co. today announced the formation of Transaxle Manufacturing of America Corporation, a joint venture that will manufacture transaxles for tractors and utility vehicles.

The newly formed company has selected a 40-acre site at the Waterford Business Industrial Park in Rock Hill, S.C. as the location of its new headquarters and manufacturing plant. Groundbreaking for the $35 million facility is planned for September 2001, with production scheduled to begin in early 2003. The plant will employ about 150 people when it reaches full production. M. B. Kahn Construction Company is the general contractor.

A transaxle is a unit that consists of a combination transmission and axles used in small tractors and utility vehicles. The new plant will manufacture transaxles initially for John Deere Gator utility vehicles and compact utility tractors.

"This joint venture between John Deere, Yanmar and Kanzaki will provide tremendous benefits," said Steve Johnson, who was named president of the new company. "By partnering with a long-term major supplier like Yanmar/Kanzaki, John Deere is able to strengthen and move its 30-year relationship to a new level to handle the challenges of today's business environment."

"It also provides production capability for growth for our current product lines as well as for additional new products being developed. It will be a key component to our order fulfillment process, which means faster delivery times to our dealers and ultimately to our customers," Johnson said.

Yanmar/Kanzaki currently supplies transaxles to John Deere from its overseas plants. "We are delighted that these three international companies have combined their talents to form a quality product," said Governor Jim Hodges. "With the reputation for excellence like John Deere, Yanmar and Kanzaki, we know their partnership with South Carolina will be strong for many years to come."

"Transaxle Manufacturing will understand what hundreds of other successful industries know, South Carolina's positive business climate and trained workforce are the best anywhere in the world," said Secretary of Commerce Charles S. Way, Jr. "We look forward to welcoming them to the community, and increasing the strength of our manufacturing sector with the 150 new full-time jobs that will be created when the plant opens in 2003."

"The Rock Hill community is thrilled that this new venture will be locating in the Waterford Business Park," said Rock Hill Mayor Doug Echols. "This will bring 150 good jobs to the area and some of the best brand names in the world right here to our community. We know they'll be great corporate citizens and good neighbors."

Deere & Company creates smart and innovative solutions worldwide, in the form of advanced machines, services and concepts, for customers on the farmsite, worksite and homesite.

Yanmar is a leading global brand for diesel engines and manufactures a full range of agricultural, marine and construction equipment, with production facilities and sales offices in the Americas, Europe and Asia. Kanzaki manufactures high quality transmissions, ranging from 2 hp. to more than 3,500 hp. for agricultural, commercial, marine and construction equipment. The company also manufactures hydraulic components as well as machine tools. Kanzaki is a wholly owned subsidiary of Yanmar.