Agco has announced that it is proposing to close its Randers harvesting equipment operation in Denmark in 2010.

Assembly operations will continue until the middle of next year before being transferred to Agco’s joint-venture harvesting manufacturing facility in Breganze, Italy.

Gary Collar, senior vice president of the company’s European, Middle East, Australia and New Zealand operations, said: “It is with regret that I have to make today’s announcement.

“We are proud of the workmanship, quality and professional attitude of our Randers workforce and everything they have achieved over many years.

“In the long term, the operation of two separate combine plants in Western Europe is not practical. As we move forward with our product development plans and strategies for growth of our harvesting business it is important that we also benefit from the economies of scale, efficiency and increased competitiveness that this consolidation will bring.”

Agco acquired a 50% stake in Laverda from the Italian Argo Group in June 2007. Laverda, based in Breganze, Northern Italy, has produced combines for over 50 years and agricultural machinery and equipment since 1873.

The Randers plant was originally owned by Dronningborg, which had a marketing agreement with MF for many years and was eventually taken over by Agco.