Despite putting a factory expansion project on ice, managers at AGCO Corp.’s Fendt tractor unit in Germany are keeping ambitious growth targets firmly in their sights.

Building work, machine tool installation and logistics systems were already under way when the rapid decline in tractor demand hit last year and the program was put on hold.

“The Fendt Ahead2 project for expanding production capacity to 20,000 units will provide a realistic opportunity for Fendt’s continued sustainable…