04/06/2015 16h57

With the support from Investe SP, AGCO deploys emission control laboratory at a plant in Mogi das Cruzes

Project with cutting-edge technology gives autonomy for the group to develop and approve engines

Investe São Paulo
  • Download Marina Guimarães/ISP

    The memo was signed at the head office of the State Department for Economic Development, Science, Technology and Innovation

  • Download Marina Guimarães/ISP

    Two representatives of the São Paulo State Environmental Company, the director Roberto Carlos Santos and manager Carlos Lacava, also attended the meeting

  • Download Marina Guimarães/ISP

    The meeting participants were able to understand Agco's main projects in Brazil

  • Download Marina Guimarães/ISP

    The memo was signed at the head office of the State Department for Economic Development, Science, Technology and Innovation

AGCO, world leader in designing, manufacturing and distributing agricultural machinery, announced on March 30 the deployment of the 1st emission control laboratory at a heavy machinery plant in Mogi das Cruzes (SP), Brazil. R$ 35 million are being invested in this project, which relies on the support from Investe São Paulo, the investment promotion agency of the São Paulo State Government.

In order to mark the project announcement, Investe SP, which is linked to the State Department for Economic Development, Science, Technology and Innovation, signed on Friday, March 27, a memorandum of understanding with AGCO, an Agco group company that operates the plant where the laboratory will be installed. The document states the commitments of both the company with the investment and of Investe São Paulo in its support.

"We are guiding AGCO in tax matters and in acquiring the approval for the laboratory from the São Paulo State Environmental Company. Our legislation is clear and concise on the matter, which makes us not only the most developed state in Brazil, but also the most concerned about the environmental sustainability of its economy", explained the president of Investe SP, Juan Quirós.

The project aims to develop and approve the engines that will meet MAR-1 emission levels, as of January 1, 2017, when the law becomes effective for high power engines (up to 75 kw). In 2019, the laws will also include low power engines.

In Brazil, only three laboratories are able to perform testing on prototypes and AGCO takes the lead in implementing an emission control lab inside an agricultural machinery factory. "With this initiative, AGCO moves forward and reinforces the group's standpoint of constantly complying with the laws and anticipating compliance with new rules without increasing the costs for the end consumer. This pioneering action makes us a reference in the sector", says vice-president of marketing, after-sales, product management and development at AGCO dealerships for Latin America, Bernhard Kiep.

With the latest technology, AGCO, owner of brands Massey Ferguson and Valtra, deploys an emission control laboratory in the Mogi das Cruzes plant - which produces engines and tractors - emphasizing entrepreneurship by installing such a laboratory within an agricultural machinery factory.

"The feasibility of the laboratory is a very important step for the group, as we gain in quality (by independently testing and evaluating our own engines soon after production), time (not to depend on the availability of other laboratories, the tests will be performed faster) and cost (as having our own headquarters will eliminate the costs of outsourcing prototype tests)", said Ricardo Huhtula, director of AGCO POWER - AGCO's engine factory - for South America.

The location of the laboratory was defined based on logistics, as the engine factory is located at the Mogi das Cruzes plant. In addition, the fact that the equipment supplier is located in São Paulo favors investment in the region by facilitating integration, agility and cost, among other aspects. "Initially, the lab will conduct tests on engines manufactured in the plant, but the idea is that, in time, the engines will be tested in Mogi das Cruzes and then transported to other plants of the group", explains Huhtula.
"São Paulo concentrates 57% of the machinery and equipment industry in Brazil. Despite the national economic environment, investments in this State sector continue - the proof is that this is the second related project announced by Investe SP this month. These are companies that rely on a state that inspires confidence in its regulatory frameworks and governance practices", said the Secretary for Economic Development, Science, Technology and Innovation, Márcio França.

Comprising an engine preparation area for testing and a dynamometer for the test itself, the laboratory is expected to begin operation in October.

Sustainability

The initiative to deploy the 1st emission control laboratory at a heavy machinery factory in Brazil shows AGCO's concern in improving and promoting the emissions matter in the country. The project promotes sustainability and reduces the emission of Nitrogen Oxide (NOx) from engines, fulfilling AGCO and every citizen's duty to contribute to the environment by adopting sustainable actions.

"The investment in a laboratory of this size consolidates the importance of bethinking the matter, emphasizing the group's position in contributing to the evolution of emission control, in addition to providing assembly line autonomy, as it is possible to test and homologate the engines inside the factory", concludes Huhtula.

About AGCO

AGCO (NYSE: AGCO) is a world leader in design, manufacture and distribution of agricultural equipment. In order to support increased productivity in the field, AGCO offers a full product line, including tractors, combines, haying and forage equipment, sprayers, tillage equipment, implements and spare parts, as well as protein production and grain storage systems. AGCO products are sold through five brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®, and distributed globally by a network of 3,070 independent dealers and distributors in over 140 countries. AGCO is headquartered in Duluth, Georgia, USA. In 2014, AGCO's net sales reached $ 9.7 billion. For more information, visit www.AGCOcorp.com.