Fargo, N.D. – CNH Industrial disclosed a pending agreement to transfer ownership of its construction equipment division to Kobelco Construction Machinery, a subsidiary of Kobe Steel. The transaction values the business at roughly $1 billion, with CNH slated to receive about $700 million in cash for a 70% stake, subject to customary adjustments.
Impact on the Fargo plant
The Case New Holland manufacturing facility at 3401 First Ave. N. will remain focused on agricultural equipment, producing loaders and tractors for both farm and construction markets. The plant’s history dates back to the 1960s when it began as a Steiger Tractor operation, later becoming part of Case IH and ultimately CNH Global/Industrial. Since 1993, the site has been a key producer of CASE wheel loaders, a significant portion of its output.
Company rationale
CNH CEO Gerrit Marx said the move is “the right next step” as the agriculture sector heads toward recovery. He added that the cash infusion will be used to reduce debt and strengthen the company’s balance sheet, positioning CNH to invest in products and technologies that matter most to farmers.
Local workforce considerations
The Fargo plant experienced a reduction of nearly 200 hourly workers in March 2025, a decision tied to market conditions at the time. State Senator Tim Mathern, a Democrat representing Fargo, noted that the plant’s workforce recently ratified a new contract that provides good pay and benefits, offering stability for the community. “I just hope this change is not going to hurt the company for the long term,” Mathern said.
Timeline and regulatory steps
The sale is expected to close by the end of 2027, pending required regulatory approvals. Kobelco will become the majority owner of the construction equipment business, while CNH retains a minority interest.
What this means for Fargo
Although the full impact on the Fargo facility remains uncertain, the plant’s continued focus on agricultural equipment suggests ongoing employment opportunities for skilled workers in the region. Local leaders and union representatives will be monitoring the transition to ensure that the community’s economic interests are protected.
Background on the deal
Kobelco Construction Machinery, wholly owned by Kobe Steel, will operate the divested unit, bringing its own expertise in construction machinery to the partnership. The agreement reflects a broader industry trend of companies sharpening their focus on core product lines.
Original reporting: InForum (Fargo section) — read the source article.
