Deere said that it would invest $70 million to expand the manufacturing capacity in its facility in Waterloo, where the company makes a large number of farm tractors. Deere has previously reported strong demand for large tractors and said the investments announced Thursday will increase the number of tractors Deere can produce in Waterloo by the middle of 2013.

The $70 million investment will increase the manufacturing capacity by more than 10%. Once the improvements are completed, enhancements to John Deere facilities in Waterloo since 2002 will have increased manufacturing capacity for large tractors by more than 50%.

"Through this initiative, we will increase our manufacturing flexibility and speed," said David Everitt, president of the Worldwide Agricultural & Turf Equipment division. "The market demand John Deere has experienced for large agricultural equipment has remained strong for several years. We believe the time is right to invest in our facilities to meet future demand for the large John Deere tractors that help our customers meet the world's growing demand for food.

"The John Deere Waterloo Works are an important part of the company's global manufacturing strategy," Everitt said. "Not only does Waterloo produce whole goods in the form of the large tractors, the operations also manufacture components that are used in John Deere machines built at other facilities."