CNH’s $700 million construction deal leaves Fargo plant impact unresolved

By Rebecca Stone

CNH Industrial expects to receive $700 million in cash for 70% of its construction equipment business under a pending agreement that values that business at $1 billion, while the future of its north Fargo plant remains undecided.

CNH announced the agreement in the early hours of Monday, Nov. 9. Kobelco Construction Machinery, a wholly owned subsidiary of Kobe Steel, would operate the business as majority owner. The transaction lists an enterprise value, or stated business valuation, of $1 billion; CNH expects the $700 million cash payment, subject to adjustments, and will use it to reduce debt and strengthen its balance sheet.

Gerrit Marx, CNH’s chief executive officer, said he was confident the agreement was the right next step. “As the agriculture industry moves toward recovery, this transaction strengthens CNH’s ability to invest in the products and technologies that matter most to farmers,” he said in a company release.

Those figures represent company-stated transaction terms rather than realized proceeds. Closing is expected by the end of 2027, subject to regulatory approvals.

What happens to the Fargo plant?

The Case New Holland Manufacturing Plant at 3401 First Ave. N. makes loaders and tractors for the agricultural and construction industries. CNH has not said how Kobelco’s majority ownership would change production, employment or parts sourcing at the site.

The plant’s history includes three milestones:

• The 1960s: Steiger Tractor established the operation’s roots at Fargo.
• Mid-1980s: Case IH acquired Steiger, and the company later became CNH Global and then CNH Industrial.
• 1993: CASE wheel-loader production began, and CNH says it still accounts for a significant share of Fargo output.

What are workers saying about costs and demand?

Landis Larson worked at the plant for 40 years and served as a union representative on numerous bargaining committees before retiring last year. He said many parts used in assembly come from overseas and believed the company faced heavy steel-tariff costs.

Larson also said the plant had been building fewer loaders than tractors for a while. He attributed weaker tractor performance to farmers not spending money and described the combination as a double burden on the plant.

The report contains no sales volume, order backlog or crop-price data against which to measure that slowdown. Larson’s observations describe current conditions, not a forecast of farm income or future equipment orders.

The plant already reduced its workforce in March 2025, when nearly 200 hourly workers were laid off because of existing and anticipated market conditions. The transaction announcement provides no updated employment figure or explanation of how those cuts relate to a future production plan.

What changes for farmers and workers?

Sen. Tim Mathern, D-Fargo, said union workers had ratified a new labor contract the year before the announcement. He described the positions as providing good pay, benefits and stability for the community. “I just hope this change is not going to hurt the company for the long term,” he said.

CNH says the transaction will sharpen its focus on manufacturing agricultural equipment, while Kobelco would take majority control of the construction business. The announcement does not specify which Fargo products or production lines might move, whether the plant’s workforce will grow or shrink, or how the transaction could affect equipment availability for farmers.

No crop yields, commodity prices or basis data, meaning the gap between cash and futures prices, accompany the announcement. The spending slowdown therefore cannot be quantified as a change in farm margins. Marx’s reference to agricultural recovery is a company forecast, not a reported result.

CNH’s next steps are regulatory approval, a closing targeted for the end of 2027 and disclosure of any production decision for Fargo. Whether CNH follows through on the agricultural product and technology investment Marx described will determine the outcome for workers and farmers.