October 3, 2011 / 2:25 PM / 6 years ago

UPDATE 1-Deere to build two equipment plants in Brazil-CEO

* Construction on plants to start in 2012

* Factories to start production in 2013

* Plants to build construction loaders, excavators (Adds details, quotes from CEO)

SAO PAULO, Oct 3 (Reuters) - Deere & Co (DE.N), one of the world’s biggest heavy equipment producers, will build two plants in Brazil to meet demand from construction and infrastructure projects, Chief Executive Samuel Allen said on Monday.

Deere said it plans to tap into strong local and regional demand for loading and excavating equipment from the construction sector.

“Brazil is one of the construction equipment markets that is growing the most in the world right now,” Allen told reporters in Sao Paulo via video conference.

One of the plants will produce equipment for Deere, and the other will produce for both Deere and Hitachi Construction Machinery Ltd.

Deere will invest $124 million in the plants, in Indaiatuba in Sao Paulo state, and Hitachi will invest $56 million.

Construction is expected to start in 2012, and production of equipment will begin in 2013. (Reporting by Reese Ewing; Writing by Luciana Lopez; editing by John Wallace)

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