CNH Industrial has issued a statement regarding the potential closure of its Burlington, Iowa, plant in the second quarter of 2026.
According to a news report published online Nov. 18 by KTVO-TV, CNH offered the following official statement on its southeast Iowa plant via email to KTVO on Nov. 14, where the company explained the situation, quoting:
“CNH has tentatively decided to move the production of backhoes, tractor loaders and rough terrain forklifts out of the Burlington plant to other CNH facilities in the U.S. and Europe," said a CNH Representative. "If this tentative decision is finalized, then upon completion of this move, the Burlington site, which currently has approximately 350 employees, will be closed. This decision is part of the company’s continuous global initiatives to streamline operations, minimize costs, and bolster competitiveness in a changing market."
Earlier this month, the Des Moines Register and other local outlets reported that Burlington, Iowa mayor Joe Billups confirmed he was informed by the Greater Burlington Partnership of the company’s plans on Nov. 8, when unconfirmed United Auto Workers union sources said they were notified, as well. The plant is one of the largest employers in southeast Iowa.
On Nov 7, Farm Equipment reported on the company’s report of 3rd quarter 2024 revenue declines, which were down 22% from third quarter 2023. In issuing its statement, CNH wrote: “With the current challenging market conditions facing farmers across the globe, CNH is implementing decisions to advance our transformation journey. We have focused on making the Company’s operations more efficient and on being more responsive to our customers’ needs. But dealer inventories remain elevated and will require additional efforts to align with retail demand. As we further adjust production levels while making investments in technology and quality-improving processes, we are positioning ourselves for the long term and cementing our leading position in the industry. We look forward to sharing more details of our strategy at our investor day on May 8, 2025.” It further added that the decline in Net sales of Industrial Activities is mainly due to lower shipments on decreased industry demand and reduced dealer inventory requirements.
Source : Farm Equipment