Matbro signs deal with John Deere

Matbro has signed an agreement with US plant manufacturer John Deere for the manufacture and supply of telescopic handlers.

Matbro's extra production capacity at its new factory in Dungannon, Ireland, has been instrumental in the company sealing the deal.

The joint marketing agreement, which 'follows up nicely on the back of the factory opening at the start of the year', according to Matbro sales director Brendan McGrath, is targeted at increasing sales of telehandlers in Europe, Africa and the Middle East.

Under the open-ended agreement, Matbro's rigid all-wheel steer telescopic handlers, the TS260 and TS270, will be marketed in John Deere's green and yellow livery and fitted with John Deere engines. The first John Deere-badged machines are destined to roll off Matbro's production lines in November.

Commenting on the agreement, McGrath said: 'This deal gives us access to a tremendous distribution chain across Europe.' To date, John Deere, better known in the agricultural sector for its tractors, operates more than 600 agricultural dealer outlets throughout Europe.

Matbro is already supplying US company Ingersoll-Rand with TS260 telehandlers. The deal, agreed in 1994 and destined to last five years, involves the machines being badged as I-R VR50s. For the time being, the John Deere machines will not be marketed in the US.

The deal sees Matbro's reliance on the UK construction and agricultural markets spread over a wider base, strengthening the company's continued strategy to be the pole player in the world market. According to David Phillips from the Corporate Intelligence Group, Marbro's share of the UK telehandler market in 1994 - which included rigid range terrain forklifts - is in the region of 23-24%