South African heavy equipment manufacturer Bell and US-based John Deere might see their paths split in terms of an articulated dump trucks (ADTs) manufacturing and distribution agreement between the parties.

This followed an announcement by John Deere earlier this year that it would start manufacturing its own range of ADTs.

Under previous agreements, John Deere, which has a 31.6% stake in Bell, would manufacture, assemble and distribute Bell-designed ADTs in certain markets under an exclusive distributor mandate.

“Although discussions are ongoing between the parties the successful completion of these negotiations and the amendment of the current licence agreements between Deere and Bell will end the exclusivity provisions, facilitating Bell’s direct entry into certain strategic markets, in particular with respect to ADTs,” Bell said in a statement.

John Deere would also be allowed to distribute its products worldwide.

Bell said that discussions were under way to ensure the continuation of Bell’s role as Deere’s dealer of construction and forestry equipment in South Africa and a number of other countries in sub-Saharan Africa.
 

To subscribe to Engineering News's print magazine email subscriptions@creamermedia.co.za or buy now.