John Deere has announced plans to close two North American manufacturing sites and transfer production to other plants.
One of the plants to be axed is the windrower and round baler site at Ottumwa, Iowa, production of which will shift to Des Moines. The plan is to transfer windrower production by the end of 2027 and round balers by the end of 2028, after which the 115-year-old Ottumwa plant will close.
The Hagie plant in Clarion, Iowa, will be the second site to close once STS sprayer production has been transferred to Thibodaux in Louisiana. This is planned to start early 2028 with manufacturing ending in Clarion by the end of 2029. Deere bought a majority interest in Hagie in 2016 and completed the purchase in 2020.
While the Thibodaux facility gains sprayer manufacturing, it will simultaneously lose production of sugar cane harvesters which is moving to Catalão, Brazil, where Deere already manufacturers sugar cane harvesters.
The move aligns production closer to the largest markets in South America and improves efficiency by consolidating production in a single location. Today, Thibodaux produces around 35 machines a year for the US market. The plant will close sometime in 2029.
Part of a multi-year restructuring plan, the consolidation is designed to align production capacity with regional customer demand and strengthen long-term competitiveness.
John Deere expects to continue serving customers without disruption throughout these changes. The company says it will manage the transitions carefully with the goal of maintaining product quality, availability, and service.
The company will engage with employees, union representatives where applicable, local leaders, and community stakeholders, and says it is committed to identifying the best future use for the Ottumwa and Clarion sites, which at normal production capacity employ around 300 workers.
John Deere is also looking at production of its construction and forestry machinery, and is evaluating strategic sourcing opportunities across its operations.
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