CNH AWARDED FUNDING TO FACILITATE JOBS CREATION IN BURLINGTON, IOWA
LAKE FOREST, Ill., April 21 -- /PRNewswire-FirstCall/ -- CNH Global N.V. (NYSE: CNH) reported that it was awarded $635,000 in Economic Development Set-Aside (EDSA) funds by the Iowa Economic Development Board and Iowa Department of Economic Development (IDED) to expand the workforce at its Burlington, Iowa manufacturing plant and approved for tax benefits if it makes the proposed investments in an Enterprise Zone.
CNH is considering a four-phase job expansion in Burlington that, if fully implemented, would create 127 jobs over a three-year period. Initially, about 35 positions are expected to be added in May due to volume increases and market expansion. In addition, a frame welding project is expected to add another 39 jobs prior to the fourth quarter of 2006. All of these additions are contingent on future market stability.
"I am excited about the opportunities that this brings to our plant and our community," said Steve Van Zant, manager of the plant, which manufactures tractor loader backhoes and forklifts.
"We don't yet know the full extent to which we will be expanding jobs, but having the support of the state and local governments to ease the cost of expansion here will aid in CNH making decisions in favor of the Burlington site. Receiving this funding assistance was made possible by a number of people in our city government and at the county and state levels, all working together to bring economic opportunity to the southeastern Iowa area. They deserve our recognition and thanks."
Part of the Burlington project under consideration could involve the transfer of a product line, although CNH said it has not made any commitments regarding such a move. Other phases of the expansion could bring to CNH Burlington various assembly and welding production work that is now outsourced.
Earlier in the month, the Burlington City Council voted to provide CNH a $190,500 forgivable loan contingent on the company creating 127 new jobs over the next three years. Supervisors from Des Moines County also agreed to provide $63,500 should the jobs be created because of the expansion.