MOLINE, Ill. (AP) -- Deere & Co. on Tuesday said it is forming a joint venture with India's Ashok Leyland Ltd. to manufacture backhoes and four-wheel-drive loaders for sale in India and overseas.
Financial terms of the deal between the agricultural equipment maker and Ashok, a unit of the Hinduja Group, were not disclosed.
Initial production is planned for early 2010. The companies are evaluating potential sites in India on which to build a manufacturing facility.
Ashok Leyland has a broad dealer network in India -- the world's largest backhoe market in 2007 -- and exports to more than 20 countries.
The India venture marks Deere's latest investment overseas. In addition to being a major seller in South America, Deere in February announced a joint venture to build construction equipment in China. The company has been weathering the domestic downturn by drawing a larger percentage of its business from outside the U.S. and Canada.
