MOLINE, Ill. - Deere & Co. finalized its purchase of the world's largest producer of forest harvesting equipment, Timberjack Group of Finland. Terms of the deal were not disclosed.

The purchase was first announced in December 1999, but final approval did not occur until late April. Deere is establishing headquarters for the company in the Atlanta area, although some headquarters functions will remain in Finland.

Deere said the acquisition will allow the company to achieve cost savings in product design, supply management and manufacturing efficiencies while maintaining strong customer and dealer support for the equipment of both companies. Deere also noted it intends to maintain both the Timberjack and Deere brands in forestry equipment.

In other Deere news, citing a need to improve efficiencies within the competitive engine business, the company announced it will phase out engine production at its John Deere Dubuque Works plant in Dubuque, Iowa, over the next three to five years.

The company said it does not expect any of the engine operations' 300 employees, or about 20 percent of the plant's workers, to lose their jobs. Eventually, all of the employees will work in the company's Dubuque construction equipment process. The engine operations at the plant will be transferred to Deere facilities in Waterloo, Iowa, and Torreon, Mexico.