CNH Industrial N.V.
), a premier global manufacturer in the capital goods sector, is
making a $24-million investment to expand its production facilities
in Burlington, Iowa. With the capital funds, the company intends to
add a crawler dozer production line to its manufacturing plant in
The expansion will create approximately 50 full-time jobs, with
production in the crawler dozer line expected to commence in the
second half of 2015. The project is subject to approval and
completion of all state and local incentives and grants.
Under the modified operating plan, the production facilities will
consist of a new paint line, a dedicated assembly line, and welding
and computer numerical control machining equipment. The
state-of-the-art production line will complete the dozer products
range for Case Construction Equipment, catering to the construction
requirements of the region. Case Construction is one of the
flagship brands of the company for earth-moving equipment.
Currently, the equipment is being manufactured at the Calhoun,
GA-based plant which will close in the third quarter of 2015 as
part of the company's strategic operational adjustments.
Shifting the production line to Iowa corresponds with the company's
long-term strategy of optimizing its manufacturing foothold and
accomplishing a streamlined, flexible industrial operational
structure. Moreover, the move is aimed to capitalize on the
burgeoning demand for high-quality construction equipment in Iowa.
The Burlington plant, employing over 600 people, has been
manufacturing equipment for CNH Industrial's brands since 1937.
Apart from producing Case Construction Equipment, the plant also
manufactures agricultural equipment for Case IH and New Holland
CNH Industrial has a strong market presence with 12 manufacturing
plants, 12 research and development centers, and a combined
workforce of 10,000 people in North America. The company is
currently seeking to expand its footprint in high-growth regions to
extend its leading position in the market.
CNH Industrial presently holds a Zacks Rank #3 (Hold). Notable
stocks in the foreign auto industry that look promising include
Nissan Motor Co. Ltd. (
), Fuji Heavy Industries Ltd. (
) and Toyota Motor Corp. (
). While Nissan sports a Zacks Rank #1 (Strong Buy), both Fuji and
Toyota carry a Zacks Rank #2 (Buy).
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