CNH Industrial, the parent company of Case Construction Equipment, has announced that effective December 31, it will stop all construction equipment sales activities in China.
CNH says sales of construction equipment in China totaled approximately $88 million in 2021. The company does not expect to incur significant charges in connection with the termination of its construction equipment sales activities in the country.
According to the news release, this decision is part of the CNH’s ongoing turnaround plan for its global construction business. However, the company says it remains fully committed to its customers and dealers in China and will continue to support the existing fleet of Case machines.
All other existing CNH Industrial activities in the country will not be affected by this decision and will continue without any change, the company says.
During the CNH’s third quarter investor relations update, CEO Scott Wine said global industry volume for construction equipment decreased in both heavy and light sub-segments, mostly driven by a 9% decrease in light and heavy equipment demand for Asia Pacific, particularly in China. Overall, sales for construction and agricultural manufacturer increased year-over-year in Q3 by 23.9% to $5.9 billion, while the construction division saw a Q3 increase of 16% to $895 million.
