Iowa Company Tied to John Deere Announces Plant Closure
John Deere & Company has announced over 2,000 layoffs in the past year. Now companies that have done business with the ag manufacturer are also feeling the pain.
The Des Moines Register reports that Gates Corp. has announced that it will be closing its Iowa plant this November. 41 people are set to lose their jobs when the closure happens. The closing was posted on the Worker Adjustment and Retraining Notification or WARN site. While there was no reason given for the plant closure, the Register reports that Gates Corp. has been a supplier of hydraulic hoses to John Deere, which has cut thousands of jobs in recent months due to a downturn in ag-related manufacturing.
Gates Corp., which is located in Newton, Iowa, didn't respond to a request for a comment by the Register. Gates Corp. purchased the plant in 2017 which was then run by Atlas Hydraulics. The Register reports that the 65,000-square-foot plant is located in Newton's industrial park on the city's north side.
The Register reports that the executive director of Newton Development Corp, Frank Liebl, had his concerns about the company because of its ties to John Deere. Gates Corp. officials told him back in April that their business would not be affected by John Deere's job cuts.
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