Published online: Jul 03, 2002
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Our recent issue of Sugar Producer falsely stated that Alloway will discontinue its line of sugarbeet harvesters as of July 31, 2002. It should have read that John Deere would discontinue their joint venture with Alloway Industries, but Woods Equipment Company, or Oregon, IL, plans to continue using the Alloway brand, manufacturing Alloway Products at other locations.

The actual press release is as follows:

MOLINE, Illinois (February 28, 2002) -- Deere & Company and Woods Equipment Company said today that they would discontinue Alloway Industries, L.L.C. -- a joint venture manufacturing operation in Fargo, North Dakota. Alloway Industries will cease production by July 31, 2002.

Alloway Industries makes hay and forage equipment for John Deere and farm implements for Woods. Woods Equipment Company, of Oregon, Illinois, plans to continue using the Alloway brand, manufacturing Alloway products at other locations. Deere said that most product models branded John Deere by Alloway Industries would be discontinued although production of one model will move to another Deere facility in Ottumwa, Iowa.

The decision to close Alloway Industries affects a workforce of approximately 80 full-time employees, all of whom will be eligible for a comprehensive severance package. Employees were told of the plans to close the facility today.

Deere said it initiated the decision to close Alloway Industries by providing notice to Woods of its intention to resign from the joint venture. Deere said this action is one of several focused on reducing the asset intensity in the company and eliminating excess production capacity.

Deere and Woods formed the Alloway Industries joint venture in 1996. Alloway Industries occupies a 100,000 square foot facility in Fargo. Other John Deere operations in the Fargo area are not impacted by today's announcement. These include Phoenix International in Fargo and AgAir in Valley City.

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