Agricultural equipment maker Deere & Co. said today it plans to acquire a manufacturer of low-horsepower tractors in southern China, the Associated Press reported.

Financial details were not disclosed. Deere said it has signed a definitive agreement to buy Ningbo Benye Tractor & Automobile Manufacture Co. and is seeking approval from the Chinese government.

Deere said the purchase will expand the product line it offers to Chinese farmers and enhance its worldwide capacity to produce small tractors. Deere currently builds tractors in the 60- to 120-horsepower range at its China joint venture tractor factory, located in Tianjin. Benye mainly builds tractors in the 20- to 50-horsepower range.

The company said there is a growing demand for smaller tractors in China because of increasing mechanization by rice farmers. Deere said 95 percent of Benye’s current revenues come from sales within China.

Deere plans to create a wholly owned subsidiary named John Deere Ningbo Agricultural Machinery Co. Ltd. to manage the business. The acquisition is expected to close later this year.

Deere shares closed at $114.19 yesterday.