AGCO invests €54 million in AGCO Power plant

Agricultural machinery and precision ag technology provider AGCO Corporation has announced the opening of new production facilities at its AGCO Power division in Linnavuori, Finland. The investment, valued at €54 million, is part of AGCO’s previous €70 million commitment to the Linnavuori engine plant, announced in March 2024.

The new facilities in Linnavuori, Finland, include a state-of-the-art machining hall for CVT components and engine cylinder heads. (Photo: AGCO)

The Linnavuori plant, which employs 1,000 workers, currently has a production capacity of more than 50,000 diesel engines annually. The engines are used to power AGCO and other tractor brands, as well as ships, generators, pumps and power stations.

The new facilities include a state-of-the-art machining hall for manufacturing continuously variable transmission (CVT) components. According to AGCO, Linnavuori is Finland’s largest transmission gear manufacturing site by volume, with production space now expanded by 5,600 sq. meters.

The machining hall will also produce cylinder heads for AGCO Power’s latest CORE engine, the 8 L Power CORE80 introduced at Bauma earlier this year. The Linnavuori site produces gas engine blocks and marine engines, as well.

“This machining investment strengthens Linnavuori’s role as AGCO’s global center of expertise for engines,” said AGCO’s Kelvin Bennett. (Photo: AGCO)

“This machining investment strengthens Linnavuori’s role as AGCO’s global center of expertise for engines,” said Kelvin Bennett, senior vice president of Engineering at AGCO. “We are investing in cutting-edge production technology and sustainable solutions that support farmers around the world.”

In addition to the manufacture of new engines, AGCO Power has been refurbishing engines at the site for over 50 years, with systematic remanufacturing starting in 1990. Today, over 1,000 engines are remanufactured annually.

A newly expanded remanufacturing area, included as part of the investment, increases the plant’s capacity, with AGCO projecting 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,” said Jussi Rinne, director of Quality and Aftermarket, AGCO.

In 2024, AGCO Power announced the opening of a clean energy laboratory in Linnavuori, where future lower carbon engine technologies are researched and tested. The company said the newly completed machining hall and remanufacturing expansion complement the Linnavuori site, strengthening AGCO Power’s position in sustainable power generation solutions.