Valtra has also developed a tractor and accessories suitable for harvesting of peat. The company owns a 70 percent share of Finnish peat bogs.[1]
Additionally, Valtra has a large interest in the sugar cane industry. Valtra do Brasil, the company’s Brazilian manufacturing branch, has received the Master Cana award in recognition of the tractors’ performance in sugar cane harvesting and the company’s after sales service. Valtra owns a 70 percent market share of the Brazilian sugar cane industry.[2]
The company’s product line is comprised of the S, T, N, A, and 3000 series tractors, as well as a variety of optional features and accessories.
Valtra has a manufacturing plant in Suolahti, Finland and another in Mogi das Cruzes, Brazil. The company is the leading tractor manufacturer in the Nordic countries, and holds second place in Latin America.[3]
[edit] History
The story of Valtra Inc. can’t be accurately told without examining the actions of numerous enterprises that intertwined and evolved to eventually give way to Valtra as it exists today.
[edit] Johan Theofron Munktell
Although Valtra’s predecessors didn’t begin manufacturing tractors until 1951, the company emphasizes that its roots were established in the early to mid-19th century by a man named Johan Theofron Munktell.[4]
Munktell, born in Sweden in 1805, attended a technical college in Sweden at the age of 17. He took employment in his early 20s at the Royal Mint where he made improvements to coin-minting machinery. Following this, Munktell became a member of the group that designed and produced Sweden’s first printing machine.
As a result of his early work, Munktell received an invitation to set up a mechanical workshop in Eskilstuna, Sweden. Named Eskilstuna Mekaniska Werkstad, the shop was open for business in 1832. The start of Munktell’s company is seen as the beginning not only of Valtra, but also of Volvo Construction.
In the mid-1800s, with his workshop firmly established, Munktell built the country’s first steam engine: the Förstlingen. Between 1853 and 1893, Munktell was responsible for the production and delivery of 31 units. The sale of steam traction engines in particular would later prove especially successful, with almost 7,000 being produced by 1921.[5]
[edit] Restructuring and New Developments
In 1857, Teofron Munktell Jr. took over leadership of the family company. In 1879, it was restructured as a joint stock company, and renamed Munktells Makaniska Verkstads Aktiebolag.
The turn of the century brought the introduction of the internal combustion engine, leading Munktell to develop its first semi-diesel in 1905. The increased demand for internal combustion engines would eventually lead the company to discontinue its line of steam engines.
In 1913, the company produced its first agricultural tractor, followed by a lighter model three years later.
The post-World War I period brought financial hardships for the company as it ceased exports to Russia; its financial position did not recover for some time.
[edit] AB Bolinder-Munktell
The company began to regain its economic foothold in 1932, resulting from a merger with J & C G Bolinder, the product of which was AB Bolinder-Munktell (or simply BM). Bolinder, a mechanical company like Munktell, had customers in France, Great Britain, and the Soviet Union, and its share of exports accounted for half of its revenue.
Soon, the new company outgrew Bolinder’s facilities, and its industrial operations were relocated to Eskilstuna. Around this time, BM ceased production of Munktell engines, in favor of focusing on the more reputable Bolinder engines. As a result, Munktell tractors were outfitted with Bolinder engines.
The company produced a variety of products through the 1930s and ‘40s, including engines, agricultural tractors, threshing machines, balers, tractor-based road rollers, woodworking machines, and machine tools. BM also developed a tractor-towed combine and started producing tractor transmissions for AB Volvo for its tractors.[6]
[edit] Volvo Acquisition and New Developments Expand Focus
In 1950 Volvo acquired BM and moved tractor production to the Eskilstuna plant to accommodate an expansion in car production at its main factory. The Eskilstuna facility continued to manufacture the green Bolinder-Munktell tractors, with the addition of red Volvo tractors. Each brand maintained its own sales network in Sweden.
A year after the acquisition, the company introduced the first self-propelling combine.[7] The MST-91 had a harvesting width of nine feet (2.7 m). In 1952 Bolinder Diesel Series hot bulb diesel engines were introduced.
In 1954 the company unveiled one of the world’s first wheel loaders, the H-10.[8] This machine, based on a BM diesel tractor, presented the opportunity for the company to embrace operations in a new sector: tractor-based contracting machines. This new focus led it to build more heavy-duty Volvo and BM tractors.
In the mid-1950s BM began developing forestry equipment. These specialized machines were based on the company’s farm tractors, in particular, the two-cylinder Victor. Not long after that, in 1957, it unveiled the Bamse, the world’s first small purpose-built forest machine.[9] This was the period that resulted in Volvo’s participation in the forestry machinery industry.
At the end of the ‘50s the company began to consider a BM-Volvo combined trademark. Soon after, red was named the company color, and was presented for the first time in 1959 on the T350 Boxer tractor. The Boxer would later become a best-seller, said to be the “brightest star of the Swedish tractor family.”[10] Its design incorporated a number of new features, most notably a fully independent PTO, engaged with a large-diameter twin disc, hand-operated multi-disc clutch. The Boxer had a long wheelbase of 91 inches (231 cm), and a weight of 5,291 pounds (2,400 kg).
The 1960s saw the development of BM-Volvo brand forestry machines and excavators, as well as the Bison series of tractors.
[edit] Business Changes in the ‘70s
The 1970s were a time of change for the company. In 1973 its brand name was officially changed to Volvo BM. This was also the decade in which Volvo decided to focus operations on excavators. Discussions were had with International Harvester, the company that would take over the North American sales of Volvo BM forestry machines. IH components were eventually incorporated into Volvo’s smaller tractor models.
Volvo soon began to feel unsatisfied with its business deal with IH, which it saw as one-sided.[11] Volvo made the decision to cease tractor and agricultural machine production, and began negotiating with Valmet of Finland. By September 1979 when the contracts were signed, the design of a new tractor line, branded Volvo BM Valmet, had already begun.
At this time, Volvo BM’s tractor operations were transferred to a company known as Scantrac, of which Valmet was a 50 percent owner. Valmet eventually became the full owner of Scantrac.
[edit] Collaborative Business and More Tractors
The acquisition of Volvo BM Valmet tractor operations propelled Valmet into a period of product development. In 1982 the company introduced its 04 line of tractors with horsepower from 49 to 67. A month later, Valmet unveiled a new line, the 05 series tractors, with 65 to 95 horsepower. By 1983 Volvo BM Valmet tractors were leading the markets in Finland and Sweden, as well as most other Nordic countries.[12] Production of the new tractors began in Brazil in the 1980s, and has continued since. In 1985 the company introduced yet another new line of tractors, with horsepower ranging from 53 to 163.
The combination of Volvo BM and Valmet tractor production was seen as one of the industry’s most successful collaborations.[13]
In 1986 Valmet made arrangements to work in cooperation with Steyr-Daimler-Puch AG to design and produce a line of engines and tractors with 90 to 140 horsepower. Despite the project’s favorable progress, it was brought to a halt in 1989 when the bank that owned Steyr forced it to enter a cooperative endeavor with another company by the name of Deutz. Valmet had no choice but to withdraw.
After the dissolution of the collaboration, Valmet developed its four-cylinder Mezzo line of tractors in 1991, followed by the six-cylinder Mega series. The company had benefitted from the cooperation with Steyr in terms of the development of new advanced features. Sales increased in continental Europe and the British Isles.
[edit] Economic Hardships and Recovery
In spite of its developments and growing sales networks, Valtra was not immune to the worldwide financial downturn in the tractor industry in 1991 and 1992. Valmet had to restructure—it merged its tractor operations in Brazil and its diesel engine manufacturing plant in Nokia, Finland, with its European operations, with headquarters in Suolahti, Finland. Valmet was also forced to reduce its workforce substantially.
To keep the company afloat, Valmet developed various business operations, including its own customer order system in 1992. It also began to focus on the further development of product quality during this time.
Valmet made further efforts to strengthen business operations by opening a sales office in each of its main export countries, to cultivate closer contact with its customers. It also began marketing its customer order system to these countries.
By the end of the 1990s Valmet had established 15 sales offices in various regions, including North and South America.[14] The company soon began to experience financial recovery.
[edit] Growth and Change in the 1990s
When Valmet made the decision to focus on the manufacture of paper-producing machinery and general factory automation in 1994, it sold its tractor, forestry machinery, and material handling operations to a company named Sisu.
Following this acquisition, the Finnish state decided to consolidate the operations of rubber-wheeled vehicles and implements within the Sisu group, which would poise the company for an eventual stock exchange listing.
While Sisu’s largest unit was Valmet tractors, Valmet forestry machines and material handling equipment operations were also substantial – in fact, they outsized their parent company. While under the Sisu umbrella, Valmet tractor operations grew and production increased annually.[15]
In 1994 Valmet was split up, and Valmet Paper Machines was awarded rights to the Valmet name. As a result, the owner of the tractor operations decided to use the Sisu name to brand the tractors. This idea was unfavorable to those involved in the tractor operations, so instead, in 1996, the name Valtra was introduced on a new articulated tractor. As stated in the contract Sisu signed when it took over tractor operations, Sisu had the right to use the Valmet name until April 30, 2001. Therefore, a complete name change was not undertaken at this time.
In addition to a major change to the fate of the tractors’ brand, 1996 also brought the development of the revised Mega 50 series, comprising Sigma Power with power boost. This product won the gold medal at the Agritechnica Exhibition in 1997.
Also in 1994 production of the first Valmet (Sisudiesel) engines began at the Valmet do Brasil manufacturing plant in Sao Paulo, Brasil. This proved beneficial for the company, which began to acquire business from firms like Massey Ferguson and Steyr.[16] Large investments were made to develop the company’s six-cylinder engines, which were produced in 1.7-, 2-, and 2.2-gallon (6.6-, 7.4-, and 8.4-L) versions.
In January 1997 the entire Sisu group was purchased by Partek, a listed Finnish company with operations focused on the chalk mine industry. Partek’s intention was to expand beyond the chalk industry into operations. The company also purchased companies Hiab and Multilift, two load-handling equipment specialists. Soon, Partek acquired Kalmar, a Sweden-based material handling equipment manufacturer. The sum of these acquisitions led Partek to become one of the world’s largest engineering companies.[17]
[edit] A New Identity and Further Acquisitions
The tractor division had been using the double brand name Valtra Valmet while under Partek’s ownership. On January 19, 2001, after three years of preparation, the full transition was made: the tractors were officially branded Valtra. This was the same year the company celebrated its 50th anniversary.
The period from 2001 and 2002 saw the fall of industrial share prices; Partek’s market value consequently weakened. In 2002, Kone Corp. stepped in and acquired Partek. The new acquisition led to the expansion of Valtra’s Suolahti factory, and a resulting increase in manufacturing capacity. In 2003, the 500,000th Valmet and Valtra tractor was produced.
Valtra tractor operations underwent yet another change when Kone, wishing to divest its tractor and forest machine business, sold Valtra Inc. to AGCO Corp. on January 5, 2004. AGCO Corp., a U.S.-based company, is the world’s third largest manufacturer and distributor of agricultural machines.[18]
[edit] The Company Today
Valtra Inc. is still owned by AGCO Corp., whose chairman, president, and CEO is Martin Richenhagen. Valtra is one of AGCO’s four core brands along with Massey Ferguson, Challenger, and Fendt.[19]
In 2007, Valtra’s net sales totaled €523 million and its employees numbered 1,050.[20]
Valtra tractors are currently sold in more than 75 countries worldwide.[21]
[edit] Equipment List
[edit] References
- ↑ Products. Official Valtra website. 02-11-09.
- ↑ Products. Official Valtra website. 02-11-09.
- ↑ About. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ History. Official Valtra website. 02-11-09.
- ↑ About. Official Valtra website. 02-11-09.
- ↑ About. Official AGCO website. 02-11-09.
- ↑ About. Official Valtra website. 02-11-09.
- ↑ About. Official Valtra website. 02-11-09.
