A JLG Industries Inc unit and SAME Deutz-Fahr Group (SDFG) plan to collaborate on compact telehandlers for the European agricultural sector.

JLG Manufacturing Europe BVBA, of Maasmechelen, Belgium, and SDFG, of Treviglio, Italy, have signed a memorandum of understanding with the intent to establish a long-term OEM agreement.

JLG would supply the compact telehandler line to SDFG for marketing through SDFG's distributor network. The equipment would carry SDFG's trademarks and use Deutz engines and JLG technology.

"The memorandum of understanding, which (SDFG chairman) Vittorio Carozza and I signed, is of strategic importance for both our companies," JLG chairman Bill Lasky said. "With the European market for telehandlers estimated to be EUR1 billion (USD1.21 billion), the combined energies of JLG and SDFG are expected to produce significant growth opportunities."

Mr Carozza said the arrangement would reinforce SDFG's competitive position in the agricultural machinery market and offer a new opportunity to SDFG dealers.

Under a proposed timetable, products would be available in Europe by the end of calendar 2004.

- JLG Industries website - www.jlg.com
- SDFG websites - www.samedeutz-fahr.com