Lely to sell forage business, focus on dairy

26-04-2017 | |
Lely to sell forage business, focus on dairy. Photo: Lely
Lely to sell forage business, focus on dairy. Photo: Lely

Lely, plans to sell its forage business, which produces forage harvesting machines to AGCO Corporation, a global player in the design, manufacture and distribution of agricultural machinery.

The intended sale of its forage activity will allow Lely to fully concentrate, on the dairy segment; the development of milking robots and other innovations for increasing the efficiency sustainability and animal welfare on dairy farms. The takeover allows AGCO Corporation to further broaden its range of forage harvesting machines.

Lely to focus on innovation

CEO Alexander van der Lely explains: “Lely intends to focus entirely on its role as innovator in the field of robotisation, and sensor and data systems for use on dairy farms. Over the last 15 years, these product groups have grown into a successful activity for Lely, with a great deal of potential for the future. Besides the innovative milking robot, other products have also been developed that are primarily based on automation with the aid of robots.”

The production of these Dairy machines will stay in Maassluis (The Netherlands), Pella (Unites States) and Leer (Germany).

Forage machine production overlap

The Forage machines that are produced in Maassluis, the Netherlands (mowers, tedders and rakes) overlap with the AGCO Corporation’s range. The production in Maassluis will be reduced after sale and the expectation is that these activities will be discontinued as of 31 March 2018. All employees in the Netherlands remain employed by Lely. Approximately 95 employees working in production will temporary be seconded to AGCO Corporation. After that, a solution will be sought for their future inside or outside the company.

Emmy Koeleman Freelance editor