Deere & Co. confirmed today that it plans to expand the manufacturing capacity at John Deere Des Moines Works in the wake of incentives provided by the Iowa Economic Development Authority and the city of Ankeny.

The Moline-based equipment maker said the expansion will retain 400 jobs. Deere plans to invest $85 million in capital improvements, including supplier tooling, to add a new 300,000-square-foot building for product assembly.

“This action is another important step as we continue to invest to meet worldwide customer demand for John Deere products,” Mark von Pentz, president of Deere’s Worldwide Agriculture & Turf Division, said in a news release.

State documents show the Moline-based company proposes investing $35 million in the plant, nearly $33 million in equipment and $45 million in research and development. Deere is seeking almost $10 million in tax credits.

In the new building, the Ankeny plant will add production capacity for self-propelled sprayers, a product already manufactured at the factory. Construction is set to begin in the spring of 2012, and Deere expects manufacturing could begin by spring of 2013.

John Deere Des Moines Works employs 1,900 workers, an increase of nearly 500 employees in the past two years.

“John Deere has many options when considering where to locate its manufacturing work force, and we are pleased to work with the IEDA and the city of Ankeny to ensure these jobs remain here in the Des Moines area,” said John Teeple, factory manager for John Deere Des Moines Works. “Today’s announcement certainly positions this facility for a strong long-term future.”

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