The full effects of today’s announcement that AGCO has reached an agreement to buy the Lely Group’s forage division have yet to break cover. The integration of Lely’s hay and forage technology will further strengthen AGCO’s full line product offering, but the proposed sale of the Dutch company’s forage activities will lead to job losses. The grassland products manufactured in Maassluis (mowers, rakes and tedders) overlap with AGCO’s assortment (Fella), which is sold through MF and Fendt channels. We understand the plan is to wind down production in Maassluis, and as things currently stand production will probably end on March 31, 2018. All 95 employees working at the site will temporarily work for AGCO.

The sale also includes two Lely sites in Germany – the baler facility at Wolfenbüttel and loader wagon factory at Waldstetten, and longer term, a reduction of approximately 200 jobs across all branches is expected (includes around 100 at Lely HQ).

CEO Alexander van der Lely says the company’s focus is on further developing robotics and other innovations (sensor and data systems) in the dairy sector. “During the past 15 years, this product group has developed into a successful activity with lots of potential for the future,” he said. The production of Lely robotics and other innovations for the milk sector remains in Maassluis (NL), Pella (US) and Leer (Germany.