July 24, 2021

180 John Deere employees losing jobs as Edmonton remanufacturing plant set to close

Agriculture and heavy machinery company John Deere is consolidating all of its remanufacturing facilities in one American location, which will result in the closure of an Edmonton facility and the loss of nearly 200 jobs.

The John Deere Reman Edmonton facility in Nisku, Alta., is one of four remanufacturing sites the company runs. The other three are all in Springfield, Mo., where previously used, worn or damaged parts are refurbished back to like-new condition.

The company is closing the Edmonton site, which it says has approximately 180 total employees who work in production and salary roles. All are losing their jobs — a move the company says is all about the bottom line.

“The decision to close John Deere Reman Edmonton is not a reflection on the employees, manufacturing capabilities or quality of products,” public relations manager Dan Bernick said in a statement to Global News.

“Various alternatives were studied, but none would enable John Deere Reman Edmonton to meet and sustain its required financial performance goals long term.”

Edmonton employees were notified Tuesday afternoon of the closure. The company said John Deere Reman Edmonton will close by Oct. 31, but at this time there are no plans to shutter any other Canadian facilities.

John Deere said it has 726 employees at facilities across Canada. The company has a forestry equipment facility in Kamloops, B.C., and a Deere-Hitachi Specialty Products (DHSP) location in Langley, B.C. There are also parts distribution centres in Edmonton, as well as in Saskatchewan, Manitoba and Ontario — where it also has marketing and finance offices.

Remanufacturing work being done in Edmonton will be taken over in Missouri.

“By consolidating the remanufacturing footprint in Springfield, we improve the financial viability of the drivetrain and hydraulic operations and prepare for future growth,” Bernick said.

The closure comes at a time when Deere & Company reported financial growth.

The global corporation reported a net income of US$1.224 billion for the first quarter ended Jan. 31 or US$3.87 per share — compared with net income of US$517 million, or US$1.63 per share, for the quarter ended Feb. 2, 2020.

Worldwide net sales and revenues increased 19 per cent in the first quarter of 2021 to $9.112 billion, the company reported.

Late last month, the company increased its quarterly dividend by about 18 per cent , to US$.90 per share on common stock.