Deere plans to expand production capacity in Russia

MOSCOW, July 6 (Reuters) - U.S. farm machinery maker Deere & Co. (DE.N) will make major investments over the next 5-7 years to expand production capacity in Russia, it said on Monday with U.S. President Barack Obama due to arrive for a summit.

Deere said on Friday it planned to invest over $500 million in new Russia projects. It currently employs 75 people at a plant producing pneumatic sowing machines in the remote town of Orenburg.

"The investment into the Russian economy will allow us to increase our production and technological capacity which is also in line with the plans of the Russian government," Deere Co. said in a statement. (Reporting by Melissa Akin; writing by Simon Shuster; editing by Dmitry Zhdannikov)