CNH announces plant closings

News AED July 02, 2003
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CNH Global NV, a Lake Forest, Ill

CNH Global NV, a Lake Forest, Ill.-based agricultural and construction equipment maker, said it will close two Midwest plants in a restructuring move ordered by parent company Fiat SpA.

A combine plant in East Moline, Ill., and a casting foundry in Racine, Wis., will be shut down next summer.

The moves are part of an international turnaround plant Fiat has announced to return the Italian conglomerate to profitability by 2006. It includes plans to cut costs at money-losing units and sell off some assets.

Fiat will cut 12,300 jobs worldwide. About 1,000 of the cuts will be at CNH, which has about 28,500 employees.

The East Moline plant has about 700 employees and the Racine foundry has about 100, spokesman Jeffrey Walsh said.

CNH also will close plants in Britain, Australia and a third location that has not been announced. After the closings it will have 40 plants worldwide.

"There were some things that were encouraging for CNH," Walsh said about Thursday's announcements.

He noted that Fiat has said it will be committed to fostering research and development, building a stronger dealer network and establishing a multibrand, multidistribution system.

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