CNH TO CONSOLIDATE THREE PARTS DEPOTS INTO CENTRAL FACILITY
Action intended to improve dealer and customer service, improve efficiency and reduce costs.
Action intended to improve dealer and customer service, improve efficiency and reduce costs.LAKE FOREST, Ill. (April. 4, 2006) - CNH Global N.V. (NYSE: CNH) today announced its intent to move forward with plans to consolidate three of its parts depots into one newer and more strategically located facility.
It will result in the closure of CNH-operated parts distribution operations in St. Paul, Minn. and Kansas City, Kan. and discontinuation of use of a third-party-operated facility in Omaha, Neb. Parts distribution operations will be handled through a new, larger and more modern facility in Cameron, Mo. Details that still need to be worked out include approval of a community development block grant and other funding incentives. The company is also engaged in discussions with unions representing employees at the affected facilities.
According to Jim Sharp, President CNH Parts & Service, this action represents continuation of the second phase of a previously announced global plan to improve dealer and customer service, improve efficiency and reduce overall logistics costs of the company's parts distribution network.
"The site being considered is strategically located near the convergence of several interstates, which makes it a logistics and transportation hub," Sharp said. "Equally important is that the facility is large and expandable, which is key to our ability to meet the needs of our customers and dealers moving forward."
The two CNH-operated parts distribution centers each currently employ approximately 40 people. The new facility is expected to employ between 120 and 150 employees, depending on seasonal fluctuations. It provides parts and service to support the company's Case IH and New Holland agricultural equipment and Case and New Holland construction equipment brands.
The tentative transition plan is expected to take 12 to 15 months to execute.