CNH: €150 million investment in Harvesting Center of Excellence
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Insights
The €150 million investment by CNH Industrial in the New Holland Harvesting Center of Excellence signifies a substantial commitment to innovation within the agricultural equipment sector. This move underscores the company's strategy to maintain and enhance its competitive edge in the global market. By focusing on the development and production of the new CR11 combine harvester, CNH is responding to the increasing demand for advanced agricultural machinery that supports large scale arable farming.
The redesigned assembly line and logistics area aim to improve manufacturing agility and speed, which could lead to reduced time-to-market for new products and potentially lower production costs. The integration of a new U-shape setup with testing stations and a wireless automated system for vehicle guidance is indicative of an industry trend towards smart manufacturing. These advancements could result in higher operational efficiency, better product quality and increased customer satisfaction, which in turn may have a positive impact on CNH's market share and profitability.
The financial implications of CNH's investment are multifaceted. The capital outlay is significant, yet it is an investment in future revenue streams and market leadership. By consolidating production lines and introducing new technologies, CNH is likely aiming for economies of scale and cost savings in the long run. The investment could also be seen as a move to preemptively adapt to dynamic market trends, such as the shift towards more sustainable and efficient farming practices.
Investors should note that the support from the Flemish Government's Flanders Innovation & Entrepreneurship Agency (VLAIO) may offset some of the financial risks associated with this investment. Additionally, the focus on high-tech manufacturing and the development of the CR11, which has already garnered industry recognition, positions CNH to potentially capitalize on premium pricing and strengthen its brand equity.
This investment is not only significant for CNH Industrial but also for the regional economy of West Flanders. The expansion of the Zedelgem facility is expected to have a substantial impact on local employment, investment and knowledge development. The collaboration with various research partners from the Flemish innovation ecosystem is an example of how public-private partnerships can drive regional economic growth.
The strategic investment in advanced manufacturing capabilities could also contribute to the broader agricultural sector by setting new standards for productivity and sustainability. This, in turn, might stimulate demand for high-tech agricultural equipment, potentially influencing global agricultural practices and productivity. The positive externalities of such an investment may include advancements in the agricultural sector that benefit farmers and consumers alike through more efficient and sustainable food production.
CNH:
The company is expanding its R&D and production capabilities at the New Holland Harvesting Center of Excellence in Zedelgem, Belgium, with its five-year investment plan.
Zedelgem, January 17, 2024
CNH announces the latest phase in its five-year investment plan concerning its R&D and production facility in Zedelgem, Belgium. The
CNH is the global leader in combine harvesters. The new CR11 was awarded the only gold innovation medal at the agricultural industry’s largest global trade show, Agritechnica, in late 2023.
The strategic improvements foreseen include modifications to the assembly line to enhance agility and speed, the renovation and extension of the logistics area; and the introduction of the all-new CR11 range with 7,000 new parts being added to the manufacturing logistics area.
The production lines for the New Holland CX, CR and brand new CR11 combine harvesters will be merged for greater manufacturing flexibility. A new U-shape setup will integrate four testing stations within the production line to streamline the process. In addition, the introduction of a wireless automated system to guide vehicles enables different models to be assembled on the same line, at the same time.
These improvements will further enhance the flexibility of our operations and increase the level of high-tech manufacturing, supporting CNH's ability to adapt to dynamic market trends and demand.
"For almost 120 years, our Zedelgem Center of Excellence has been renowned for manufacturing machines at the forefront of innovation. The highly specialized harvesting equipment sector is strategic for CNH and our New Holland brand has a leading position in this segment,” said Tom Verbaeten, Chief Supply Chain Officer at CNH. “As a former Zedelgem plant manager, I'm delighted to see the site continuing to innovate to deliver high quality products that generate tremendous value for our customers."
In addition to CNH’s investment, the company has received support from the Flemish Government's Flanders Innovation & Entrepreneurship Agency (VLAIO), which strongly advocates for innovation projects in the Flemish region.
"The CR11 combine harvester is the culmination of years of component and process optimization. The CNH R&D team, together with various research partners from the Flemish innovation ecosystem, sought various forms of support. As a result, the leap in knowledge and technological challenges underwent several evaluations based on the VLAIO criteria for innovation. Thanks to the successful results, the R&D team in Zedelgem maintains its global leadership for CNH combine harvesters, and the flagship model will be manufactured in Flanders. This will have a significant impact on employment, investment and further knowledge development in our region” said Marc Andries from VLAIO during the inauguration event to present the new production line to Belgian institutional representatives and the press.
Hilde Crevits, Vice-Minister-President of the Government of Flanders, who participated in the opening ceremony said: “Innovation is a driving force for employment and competitiveness. With this expansion and investment, CNH in Zedelgem, one of the largest employers in West Flanders, is resolutely opting for the future. It proves once again that CNH is an important partner to get more innovation to farmers".
New Holland also held a live demonstration of its new CR11, a new benchmark in twin-rotor combines. Entirely redesigned and thanks to the most advanced automation features and advanced technologies, the CR11 offers increased levels of productivity, profitability and sustainability for large scale arable farmers.
CNH's commitment to excellence in the specialized equipment sector demonstrates its ability to constantly innovate for the benefit of farmers worldwide. CNH is recognized as a leader in high-tech manufacturing, thanks to a diverse and skilled workforce, cutting-edge technology and high standards of quality and safety.
CNH Industrial (NYSE: CNHI) is a world-class equipment and services company. Driven by its purpose of Breaking New Ground, which centers on Innovation, Sustainability and Productivity, the Company provides the strategic direction, R&D capabilities, and investments that enable the success of its global and regional Brands. Globally, Case IH and New Holland supply 360° agriculture applications from machines to implements and the digital technologies that enhance them; and CASE and New Holland Construction Equipment deliver a full lineup of construction products that make the industry more productive. The Company’s regionally focused Brands include: STEYR, for agricultural tractors; Raven, a leader in digital agriculture, precision technology and the development of autonomous systems; Hemisphere, a leading designer and manufacturer of high-precision satellite-based positioning, and heading technologies; Flexi-Coil, specializing in tillage and seeding systems; Miller, manufacturing application equipment; Kongskilde, providing tillage, seeding and hay & forage implements; and Eurocomach, producing a wide range of mini and midi excavators for the construction sector, including electric solutions.
Across a history spanning over two centuries, CNH has always been a pioneer in its sectors and continues to passionately innovate and drive customer efficiency and success. As a truly global company, CNH’s 40,000+ employees form part of a diverse and inclusive workplace, focused on empowering customers to grow, and build, a better world.
For more information and the latest financial and sustainability reports visit: cnh.com
For news from CNH and its Brands visit: media.cnhindustrial.com
Media contacts:
| Marilù Brancato | Mariangela Vicenti |
| Italy | Italy |
| Tel. +39 345 397 2860 | Tel. +39 334 3929738 |
Attachments
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20240117_PR_CNH_
€150 _ million_investment_in_Harvesting_Center_of_Excellence_EN - New Holland CR combine entering the in-line test booths at Zedelgem plant
- New automated guided vehicles at Zedelgem plant
- 20240117_CP_CNH_investit_150_millions_d’euros_dans_son_centre_d’excellence_de_Zedelgem_FR
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20240117_PR_CNH_investering_van_
€ 150 _miljoen_in_Harvesting_Center_of_Excellence_Dutch - (L-R) Tom Verbaeten, CNH Chief Supply Chain Officer – Annick Vermeulen, Zedelgem Mayor - Hilde Crevits, Vice-Minister-President of the Government of Flanders, Stefaan Van de Walle, Zedelgem Plant Manager
FAQ
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