AGCO's Delegation to Hold Procurement Meeting in Taipei Tomorrow

Taipei, July 3, 2006 (CENS)--A procurement delegation consisting of 12 procurement officials of AGCO Corp. of the U.S., the world's third-largest manufacturer of agricultural equipment and the No. 1 supplier of agricultural tractors, will hold a purchasing policy seminar and supplier meeting in Taipei on July 4 at the Taipei World Trade Center (TWTC) under the mediation of Taiwan External Trade Development Council (TAITRA).

In line with the Board of Foreign Trade (BOFT) under the Ministry of Economic Affairs (MOEA) policy of helping local auto-parts suppliers tap into global transportation-vehicle makers' parts supply chains, TAITRA said, it commissioned its 40 overseas branches to invite major international vehicle makers, as well as tier-one, -two and -three parts suppliers, to Taiwan to find qualified contract suppliers or partners.

In the past year, TAITRA has mediated more than 30 procurement meetings and over 300 face-to-face business negotiations between major international auto and parts makers and qualified local suppliers. AGCO came to the island to find potential parts suppliers in both 2004 and 2005, TAITRA pointed out, and this year the company's procurement delegation consists of a larger number of related representatives.

As a major international agricultural-equipment maker and distributor, AGCO has set up around 3,600 sales points in 140 nations worldwide, and its 2005 global sales value was US$5.4 billion. Last year, AGCO enlisted four Taiwan suppliers into its global parts supply chains, and initially procured about US$1.7 million worth of parts from the island. In 2006, TAITRA pointed out, AGCO plans to add another five or more additional parts suppliers in Taiwan, and the annual procurement value is expected to grow to about US$2.6 million.

According to TAITRA, Walter Yeh, executive vice president of TAITRA, led a trade delegation to call upon AGCO's global procurement headquarters in London of the U.K. for the first time in April 2004. The delegation's efforts were rewarded when AGCO sent a procurement delegation to Taiwan in November of the same year and then set up a procurement office on the island in 2005.

The council added that David Furr, vice president of purchasing and materials in Europe, Africa, and the Middle East (EAME) for AGCO, gave high marks to Taiwan suppliers' technical capabilities after his trip to the island. This year, AGCO's procurement delegation will include the highest-ranking purchasing officials of the company's major global brands such as Messey Furgusson (France), Fendt (Germany), and Valtra (Finland), TAITRA claimed.

During the AGCO procurement seminars, officials will introduce the company's procurement policies and requirements, as well as let qualified suppliers give briefings to the members of AGCO's delegation.

According to TAITRA, AGCO's global procurement president, Nigel Imbush, said previously that his company does not currently have automotive electronics, rubber tire, and wheel-related product lines and techniques, which might be the purchase focuses of the delegation on their visit here.