Construction will begin within the week to add a paint system, receiving and a quality assurance area. Upon completion, tractor assembly operations will begin sometime in 2002 in a 171,000 square foot section of the 510,000 square-foot facility.

"Today's ceremony comes as a result of a team effort," said Jean-Pierre Rosso, CNH chairman. "The State of Wisconsin, the Racine community, the United Auto Workers and the company's management came together to keep jobs and tractor production in Racine County. Racine has long been home to the Case and Case IH brands. In the future, we will also introduce production of New Holland branded tractors in this facility."

During a brief speech before shoveling the first scoop of dirt, Wisconsin Governor Scott McCallum said Case has a long heritage in the state and that he looks forward to a continued partnership.

"Today, we break ground for a tractor manufacturing facility that begins a new chapter in the partnership between CNH Global N.V. and the state of Wisconsin," McCallum said. "The plant's jobs and investment are vital to the Racine area and to our state as a whole. I am pleased that we could assist CNH through an incentive package through the Department of Commerce. We count CNH as a valuable partner as Wisconsin continues to move forward with a focus on creating jobs and strengthening our economy."

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 the corporate initiative that was announced in July 2000. In that announcement, 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.