AGCO is channeling €54 million into its AGCO Power division in Linnavuori, Finland, a move that expands capacity in both precision machining and remanufacturing—areas central to lowering lifecycle emissions in farm equipment.
The Linnavuori site, already Finland’s largest transmission gear manufacturing plant by volume, has added 5,600 square meters of new production space. This investment builds on AGCO’s earlier €70 million commitment and reinforces the factory’s role as AGCO’s global center of expertise for engines.
The expansion includes a machining hall tasked with producing cylinder heads for AGCO Power’s latest CORE engines and components for Continuously Variable Transmission (CVT) systems. These technologies are key to AGCO’s flagship tractor brands—Fendt, Massey Ferguson, and Valtra—where efficiency gains directly translate into reduced fuel consumption on farms.
AGCO Power’s decision to double down on remanufacturing aligns with the company’s Farmer First strategy, where lifecycle costs are as important as upfront investments. The Linnavuori plant has refurbished engines for more than 50 years, with systematic remanufacturing launched in 1990. Annual volumes currently exceed 1,000 engines, but the new facilities raise potential output to 2,500 engines per year.
The benefits are primarily economic and environmental. According to AGCO Power, up to 80% of an engine’s mass can be reused, including all cast iron components, reducing both material demand and carbon emissions. Compared to building a new engine, remanufacturing carries a significantly lower carbon footprint, an increasingly important consideration for farmers managing total cost of ownership under tightening emissions standards.
Beyond incremental improvements, AGCO is investing in future-facing power solutions. In 2024, the company opened a clean energy laboratory at Linnavuori dedicated to testing lower-carbon engine technologies. While details on fuel pathways remain limited, the integration of research with active production suggests AGCO is working to align incremental remanufacturing efficiencies with longer-term energy transitions in agricultural machinery.
