Deere & Co. has announced it will invest about $100 million to modernize the John Deere Foundry in Waterloo, Iowa.

According to Deere, the modernization work will take place over the next 4 to 5 years. The project will allow the heavy equipment maker to improve manufacturing capacity and flexibility.

According to Deere executive David Everitt, the integrated approach in the design and manufacturing of large row crop and four-wheeled-drive tractors gives the company a competitive advantage.

Wednesday's announcement by Moline, Ill.-based Deere was made in conjunction with the Iowa Department of Economic Development. The department agreed to provide tax incentives to Deere to retain the Waterloo Foundry jobs in Iowa.

Deere is the world's largest maker of agricultural equipment. It also makes construction, forestry and landscaping equipment, such as backhoes, excavators, riding mowers and leaf blowers.