Key Takeaways:
- AGCO Power opens new machining and remanufacturing facilities in Linnavuori, Finland
- €54 million investment is part of AGCO Corporation’s €70 million commitment to the site
- Expansion supports circular economy practices and sustainable power generation
- Capacity for remanufactured engines increases from 1,000 to 2,500 annually
- Facility serves as AGCO’s global center of expertise for engine production
AGCO Strengthens Engine Production in Finland
AGCO (NYSE: AGCO), a global manufacturer of agricultural machinery and precision ag technology, has expanded its AGCO Power™ division in Linnavuori, Finland. The €54 million investment enhances the site’s machining and remanufacturing capabilities, reinforcing the company’s commitment to sustainable power generation and circular economy practices.
Focus on Precision and Sustainability
The new facilities include a state-of-the-art machining hall for producing Continuously Variable Transmission (CVT) components and cylinder heads for AGCO Power’s latest CORE engines. The remanufacturing area has also been expanded, boosting capacity to restore and reuse engines for the company's brands such as Fendt®, Massey Ferguson®, and Valtra®.
Kelvin Bennett, Senior Vice President of Engineering at AGCO, highlighted the strategic importance of the investment: “This machining investment strengthens Linnavuori’s role as AGCO’s global center of expertise for engines. We are investing in cutting-edge production technology and sustainable solutions that support farmers around the world.”
Expanding Circular Economy Practices
AGCO Power has been engaged in engine remanufacturing for over 50 years, with systematic processes established in 1990. Currently, more than 1,000 engines are remanufactured annually. With the new facilities, capacity will expand to 2,500 units per year, allowing up to 80% of each engine’s mass—mainly cast iron components—to be reused.
“Remanufactured engines extend the lifespan of machines and deliver a much lower carbon footprint compared to producing new ones,” explained Jussi Rinne, Director of Quality and Aftermarket at AGCO Power.
Future-Ready Investments
In addition to engines for tractors, the Linnavuori site also produces gas engine blocks and marine engines. In 2024, the company opened a clean energy laboratory at the facility, dedicated to researching lower-carbon engine technologies. The latest expansion complements these efforts, positioning the site as a hub for innovation in sustainable power generation.
