Case Backhoe Loader Plant to Close in Iowa

By: Gretchen Teske
Source: Quad City Times, Davenport, Iowa (TNS)

BURLINGTON—Industrial machine company CNH has finalized its plan to close a plant in southeastern Iowa, eliminating hundreds of jobs in the process.

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In a news release published Tuesday, CNH leadership announced it had finalized its previously announced plan to gradually stop production at its Burlington assembly plant by the second quarter of 2026. The release attributed to change to declining demand and underutilization.

The closure will affect approximately 200 employees.

“The company remains committed to supporting impacted employees through negotiated support packages and will maintain a presence in Burlington focused on engineering and testing,” the company said in the release.

The decision follows a 47% decline in loader backhoe demand since 2014, a key product line produced in Burlington, while demand for skid steers and compact track loaders produced at other CNH facilities increased nearly 70%, making Burlington the lowest-utilized and most costly facility to maintain, the release said.

The decision was tentatively announced in November 2024 and finalized this week after a bargaining process with the United Auto Workers union.

CNH said it will negotiate strong separation packages with the UAW, with packages expected to include severance pay, continued health insurance, job training and replacement assistance.

Production at the Burlington plant is paused for the remainder of the week, giving employees paid time off to process the news, the release said.

CNH will maintain engineering teams and a proving ground in Burlington, according to a news release. Adjustments will reinforce CNH plans to invest nearly $5 billion over five years into U.S. manufacturing and R&D facilities, supporting over 8,000 American employees.

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