John Deere will recall laid-off workers in Iowa for production of dozers and articulated dump trucks, expand its excavator production in North Carolina and open a new parts distribution center in Indiana.
The moves are expected to be completed in the next year, the company said this week, and employ around 400 people total.
“These investments further demonstrate our commitment to invest $20 billion in U.S. manufacturing over the next 10 years,” says CEO John May.
New Excavator Plant
The new $70 million excavator plant in Kernersville, North Carolina, will add to existing production there and bring an estimated 150 jobs, according to Deere. The company currently employs about 600 at the excavator plant.
Deere announced the additional plant in 2024. It reiterated the plans January 27, adding that it will “assume production of future generation excavators previously produced in Japan.”
Deere says the campus “will produce the only excavator designed, developed and manufactured in the U.S.”
In its 2024 announcement, Deere said the new plant would produce 6- to 10-metric-ton excavators.
In 2022, Deere ended its 33-year agreement with Japan-based Hitachi to produce Deere-branded excavators for the North American market. It has since rolled out new models, including new mini excavators and midsize P-Tier machines, which the company says are entirely designed and will be produced in-house.
The Kernersville plant was part of Deere and Hitachi’s joint venture. Deere bought the plant outright in 2002 after the split, along with two other JV plants, in Canada and Brazil.
It also announced in 2022 an agreement with Wacker Neuson to produce excavators under 5 metric tons at the German-based company’s plants in Menomonee Falls, Wisconsin, and Linz, Austria. Also, per the agreement, John Deere would develop and manufacture 5- to 9-metric-ton excavators based on technical information acquired from Wacker Neuson.
Kernersville was also announced in 2022 as the site of a new $69.6 million facility to produce battery packs and chargers as the North American headquarters for John Deere Electric Powertrain LLC.
Partner Insights
Information to advance your business from industry suppliers
The move followed Deere’s majority acquisition of Kreisel Electric, an Austrian-based developer of immersion-cooled, high-density battery technology, in 2022. Deere has said the new facility will create 50 full-time jobs, including assemblers, material handlers, packagers and quality inspectors.
New Distribution Center
Also on January 27, Deere said it recently broke ground on a new distribution center near Hebron, Indiana, expected to employ 150 people.
The center will supply parts nationwide for the company’s construction, agriculture, forestry, mining and turf customers, Deere says. “This facility will be designed to streamline operations and ensure timely delivery of equipment and parts.”
The company adds that it plans to keep its primary North American Parts Distribution Center in Milan, Illinois, which has been in operation since 1973 and employs about 1,200 people.