Deere (DE) to Close Facility in Welland, Ontario; Will Affect 800 Employees
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Deere & Company (NYSE: DE) today announced that it will close its manufacturing facility in Welland, Ontario, Canada, and transfer production to company operations in Wisconsin and Mexico. The plant is expected to close by year-end '09.
The Welland factory manufactures utility vehicles and attachments for the commercial and consumer equipment and agricultural equipment businesses. Deere said that by consolidating manufacturing capacity the move supports ongoing company-wide efforts aimed at improved efficiency and profitability.
Approximately 800 employees will be affected by the closure. The action is expected to result in after-tax charges of approximately $90 million, about half of which will be recorded in Q408. This amount was not reflected in the company's earnings forecast for the quarter of $425 million issued last month.
Deere & Company engages in the manufacture and distribution of products and services for agriculture and forestry worldwide.
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