CNH ANNOUNCES TENTATIVE DECISION TO CLOSE FOUNDRY
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Lake Forest, IL (February 13, 2003) CNH Global N.V. (NYSE:CNH) today announced tentative plans to close its Racine-based foundry operations in May 2004. The decision would be in line with the company's strategy to streamline its manufacturing operations and focus its attention on core activities. The company will be meeting with the union to discuss its plans.
In July 2000, CNH announced plans to reduce the number of its manufacturing facilities from 60, at the time of the merger of Case and New Holland, to 39 by the end of 2005. Included in that announcement was the sale of the foundry by the end of 2001. Exhaustive attempts to locate a buyer for the 90 year old iron foundry have been unsuccessful. The facility produces structural and center housing castings, castings for drive train components, axles, weights, and various small castings.
CNH is the number one manufacturer of agricultural tractors and combines in the world, the third largest maker of construction equipment, and has one of the industry's largest equipment finance operations. Revenues in 2002 totaled $10 billion. Based in the United States, CNH's network of dealers and distributors operates in over 160 countries. CNH agricultural products are sold under the Case IH, New Holland and Steyr brands. CNH construction equipment is sold under the Case, FiatAllis, Fiat Kobelco, Kobelco, New Holland, and O&K brands