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AGCO is set to open a new regional headquarters in Johannesburg, South Africa as part of a regional restructure to drive business development on the continent
The agricultural and equipment solutions firm will reorganise its Asia Pacific Division, effective 1 January 2017, to include Africa, expanding its on-the-ground presence and operations on the continent.
"With this new move, the realigned Asia Pacific and Africa (APA) region will be strongly positioned to leverage the synergies of similar market dynamics in the two territories," said Gary Collar, newly-appointed AGCO senior vice president and general manager, APA.
Alongside the new regional headquarters, AGCO will also open a new Future Farm in French-speaking West Africa. Both initiatives are designed to complement AGCO's existing parts distribution operation and training centre in South Africa, and Future Farm in Zambia.
"Among these key synergies are the emergence of a growing smallholder farmer segment product and application similiarities, shared consumer finance patterns and growing trade between the two regions," Collar continued.
Nuradin Osman, vice president and general manager Africa will head the AGCO Africa team, reporting in to Collar.
He added: "The new regional structure will build on the significant progress that AGCO has made over recent years and further drive our customer service and business growth in Africa."
AGCO posted net sales of approximately US$1.8bn in Q3 2016 [+1.5% year-on-year], with net sales for the first nine months of 2016 at around US$5.3bn (-3.5% approx. year-on-year). Europe/Africa/Middle East (EAME) net sales accounted for US$3bn of this share.
In Q3, Europe/Africa/Middle East reported sales grew by 1.7%, with Asia Pacific at +18.6%.
"ABCO's EAME net sales increased 4.2% in the first nine months of 2016 compared to the same period in 2015, excluding unfavourable currency translation impacts," according to the company's Q3 results.
"Higher sales in France and Scandinavia were partially offset by sales declines in Germany and Africa."