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CNH Announces Georgia Plant Closure

Posted on June 30, 2014

CNH Industrial N.V. said that it will close its assembly plant in Calhoun, Ga., in the third quarter of next year. CNH said the closure is necessary “as the company adjusts its construction operations based on current volumes and market demand, and is consistent with CNH Industrial’s long-term strategy to optimize its manufacturing footprint and achieve a lean, flexible industrial operation that delivers best-in-class response to the CNH Industrial brands’ customers around the world.”

At Calhoun, the company manufactures crawler excavators and dozers to the North American markets. CNH builds wheel loaders at a plant in Fargo, N.D.; tractor loader backhoes, tractor loaders and forklifts at Burlington, Ia.; and skid-steer loaders and compact track loaders in Wichita, Kan. The company also assembles crawler excavators, tractor loader backhoes, dozers, graders and wheel loaders at Belo Horizonte, Brazil, and components at a joint venture plant in Queretaro, Mexico.

The move comes a little over two months after CNH announced it had reached a new technology licensing and component supply agreement with Sumitomo (S.H.I.) Construction Machinery Co. Ltd. Under that agreement, CNH will manufacture Sumitomo-designed crawler excavators at designated plants within its global manufacturing network. The deal also extended an existing global product supply agreement between CNH Industrial and Sumitomo (S.H.I.) Construction Machinery, a wholly owned subsidiary of Sumitomo Heavy Industries, Ltd., for the sourcing of excavators from Sumitomo plants.

Sumitomo has supplied excavators from ranging from 7 to 80 tonnes to the CNH Industrial global distribution network since 1992.