MOLINE, Ill. — John Deere has announced a significant restructuring initiative focused on its U.S. manufacturing operations, marking a strategic shift aimed at enhancing operational efficiency and aligning production with evolving customer demand. According to a media source, this plan includes the planned closure of two factories in Iowa and the relocation of various production lines between multiple facilities across the country.
The restructuring appears to be a deliberate effort to optimize production capacity, concentrating investments in modern and highly utilized facilities to bolster the company’s long-term competitiveness. As part of this restructuring, the production of windrowers is set to be transitioned from the Ottumwa Works facility to the Des Moines Works, with a completion date targeted for the end of fiscal year 2027. The same timeline indicates a planned shift of round baler production to the Des Moines facility by the end of fiscal year 2028, ultimately leading to the closure of the Ottumwa factory.
In addition to these changes, production of Hagie STS sprayers is scheduled to move from the existing facility in Clarion, Iowa, to Deere’s factory in Thibodaux, Louisiana, starting in fiscal year 2028. The Hagie factory in Clarion is expected to cease manufacturing operations by fiscal year 2029. Similarly, the production of sugar cane harvesters will be relocated from Thibodaux to Catalão, Brazil, in fiscal year 2029. This move is designed to align production efforts closer to the geographical regions with the highest concentration of customer demand in South America, thereby improving operational efficiency through consolidation.
Furthermore, small planter production will shift from John Deere Seeding in Moline to the company’s facility in Paton, Iowa, also planned for implementation in fiscal year 2027. In addition to these specific transitions, Deere’s Construction and Forestry Division is actively evaluating various strategic sourcing opportunities intended to enhance competitiveness and drive investments in product development, technological advancements, and customer support.
Deere has committed to managing these changes with an emphasis on maintaining quality and service levels, assuring stakeholders that customer service will not be disrupted during the transition. The company has acknowledged the profound effects these decisions may have on its employees and their communities. In response, Deere plans to engage collaboratively with employees, union representatives where applicable, local leaders, and community stakeholders, aiming to determine the best future uses for the sites in Ottumwa and Clarion.
