CNH Industrial announced Tuesday it will shutter its Burlington plant, citing a decline in demand for the loader backhoes that are manufactured there.
The company had announced a tentative plan for the closure last year, and now says it will stop production at the Burlington assembly plant by the second quarter of 2026.
The closure will affect approximately 200 employees.
The decision follows a year-long decisional process with United Auto Workers. The union had planned a rally for Friday night in Burlington, featuring speakers including UAW President Shawn Fain, prior to CNH Industrial’s announcement.
In a release, the company said there's been a 47% decline in demand for loader backhoes—one of the Burlington plant’s main product lines—since 2014. That’s as demand for skid steers and compact track loaders produced at other CNH facilities rose nearly 70%, according to the release.
The company said Burlington had become its lowest-utilized and most costly facility to maintain.
Following the announcement, production will pause for the remainder of this week, with employees paid for the time off as they process the news. CNH plans to negotiate strong separation packages with the UAW, including health insurance, job training, and job placement assistance.
CNH plans to maintain an engineering presence at the Burlington plant, according to the release.
