MOLINE, Ill., Sept. 2 /CNW/ -- Deere & Company (NYSE: DE) said today it
will close its manufacturing facility in Welland, Ontario, Canada, and
transfer production to company operations in Wisconsin and Mexico. 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.
Production of Gator utility vehicles made at Welland will move to
Horicon, Wisconsin, where other models of the popular product as well as
riding lawn equipment are built. Production of cutting and loading attachments
will be transferred to Deere installations in Monterrey and Saltillo, Mexico.
The Welland plant is scheduled to close by the end of 2009.
Approximately 800 employees will be affected by the closure. The company
has advised the Canadian Auto Workers, which represents production workers at
Welland, of the decision. If the union should request to do so, Deere will
have further discussions about the transition associated with the closure and
its effect on employees.
Today's action is expected to result in after-tax charges of
approximately $90 million, about half of which will be recorded in the fourth
quarter of 2008. This amount was not reflected in the company's earnings
forecast for the quarter of $425 million issued last month.
Safe Harbor Statement
This release includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on current expectations and are subject to uncertainty
and changes in circumstances. More detailed information about risks and
uncertainties is contained in Deere & Company filings with the Securities and
For further information:
For further information: Ken Golden, Director, Strategic Public
Relations of Deere & Company, +1-309-765-5678 Web Site: http://www.deere.com