$1 Billion CNH Construction Business Sale May Impact Fargo Plant

CNH Industrial has agreed to sell its construction equipment business to a Japanese firm in a transaction valuing the division at $1 billion, Agweek reported.

News of the pending agreement arrived in the early hours of Monday, Nov. 9. Under the terms, Kobelco Construction Machinery, a wholly owned subsidiary of Kobe Steel, will operate the business as the majority owner.

CNH expects to receive $700 million in cash for a 70% stake in the business, subject to adjustments. The company plans to use the proceeds to reduce debt and strengthen its balance sheet.

The transaction is expected to close by the end of 2027, subject to regulatory approvals. The impact on the Case New Holland Manufacturing Plant in north Fargo remains unknown.

The Fargo facility, located at 3401 First Ave. N., traces its roots back to the 1960s with Steiger Tractor. Case IH acquired Steiger in the mid-1980s, eventually folding the site into the corporate lineage that became CNH Industrial.

In 1993, the plant began manufacturing CASE wheel loaders, which currently account for much of its production. The site also builds tractors for agricultural and construction markets.

Landis Larson worked at the plant for 40 years and served as a union representative on numerous bargaining committees before retiring last year. He told Agweek that many parts used for assembly at the Fargo facility arrive from overseas.

“The tariffs and the sign of the times … it’s not helping at all, because I’m sure they pay tons for steel tariffs.”

Larson told Agweek. He added that the plant had not been building as many loaders as tractors in Fargo for a while.

“The tractors aren’t going very well right now either. The farmers aren’t spending money so it’s kind of a double whammy for the plant.”

Larson told Agweek. The Fargo plant experienced workforce reductions in March 2025, when nearly 200 hourly workers were laid off due to existing and anticipated market conditions.

$1 Billion CNH Construction Business Sale May Impact Fargo Plant

Sen. Tim Mathern, D-Fargo, said union workers at the plant had ratified a new contract the prior year, noting that those jobs offer strong pay and benefits that support community stability.

“I just hope this change is not going to hurt the company for the long term.”

Mathern told Agweek. Gerrit Marx, chief executive officer of CNH, expressed confidence in the transition.

“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.”

Marx said in a company release.