CNH Global N.V. recently broke ground on a $22 million investment in Racine, Wis., that will add 66,000 square feet to the company's transmission plant for future tractor assembly operations.

Construction will include the addition of a paint system, a receiving and a quality assurance area. Upon completion, tractor assembly operations will begin sometime in 2002 in a 171,000-square-foot section of the 510,000-square-foot facility.

The state of Wisconsin is providing $6 million in tax benefits, low interest loans and a training grant. In return, CNH will maintain 175 salaried and hourly positions related to tractor assembly.

This construction project is part of the corporate initiative that was announced in July 2000. In that announcement, CNH said it would reorganize its industrial operations to reduce manufacturing complexity and improve efficiency by consolidating production. Tractor assembly operations will be moved to the newly expanded site and productions will resume in 2002.