bought 50% of ReGen Technologies, a remanufacturing company specializing on remanufacturing of farm equipment and engines. Basically, ReGen was founded in 1998 to remanufacture engines for John Deere products in the United States and Canada. One of the findings of my dissertation research was that the vertical integration in remanufacturing operations provides companies with more control over their operations and improves integration of reman business to overall business model of the company. Moreover, more control can also mean making strategic changes more agile so it can pave the way for growth oriented ventures. I reached these findings by interviewing many managers from organizations that have significant remanufacturing businesses and using that data to develop a model on organizational decisions for remanufacturing.
Now, if I tie the dots with my research and this recent case: In John Deere's case first came the 50% joint venture, which provides some control but not all the way- some companies might be better off with a joint venture like this, but it depends on their business objectives regarding remanufacturing. Then came the full integration. John Deere bought ReGen, named the new business Deere Reman. “We aspire to an enhanced leadership position in the remanufacturing business,” said Barry Schaffter, senior vice president of manufacturing in Deere’s Construction & Forestry division. Deere Reman will now have a global focus and operations will be fully integrated with remanufacturing operations.
No financial details on the deal were announced. Please read the full press release by John Deere here.
1 comment:
Post a Comment