Thai major CP is one of Asia-Pacific’s biggest producers of swine, chicken and eggs, while US-based AGCO distributes its machinery across five brands, including Challenger, Massy Ferguson and GSI.
Each company will own 50% of the new business, which will set out to produce solutions to be used by AGCO’s GSI division and companies under the CP umbrella.
Manufacturing is expected to begin in early 2019 at a plant in Zhejiang province, China.
The joint venture will support CP’s planned expansion across Asia, while enabling AGCO to better serve other animal protein producers in the region, said Martin Richenhagen, AGCO’s chief executive.
“Our new manufacturing joint venture with CP Foods will greatly expand GSI’s Asian production capabilities, and allow us to provide technologically advanced solutions for CP and other producers in China,” he added.