When completed, the tractor assembly operations will begin sometime next year in a 171,000-sf section of its 510,000-sf facility.

The Racine operation has long manufactured such brands as Case and Case IH; with the expansion, it will add production of New Holland branded tractors to facility, says Jean-Pierre Rosso, CNH chairman.

Wisconsin Gov. Scott McCallum says he was "pleased that we could assist CNH through an incentive package through the Department of Commerce." The state of Wisconsin is providing $6 million in tax benefits, low interest loans and a training grant. In return, CNH will maintain 175 salaried and hourly positions related to tractor assembly.

This construction project is part of a corporate initiative that was announced in July 2000 in which CNH said it would reorganize its industrial operations to reduce manufacturing complexity and improve efficiency by consolidating production. Tractor assembly operations will be moved to the newly expanded site and production will resume in 2002.

CNH officials say their company is the largest maker of agricultural tractors and combines in the world, the third-largest maker of construction equipment and has one of the industry's largest equipment finance operations. Revenues in 2000 were more than $10 billion. CNH's network of dealers and distributors operates in over 160 countries. CNH agricultural products are sold under the Case IH, New Holland and Steyr brands. CNH construction equipment is sold under the Case, Fiatallis, Fiat-Hitachi, Link-Belt, New Holland, and O&K brands.