Employees at the Caterpillar plant in Elkader were notified Thursday that the plant would close by the end of the year.
The company manufactures earthmoving equipment and manufactures various types of scrapers and trailers, among other equipment.
A total of 75 worker and management positions will be affected by the closing.
The company was formerly known as E-Ject Systems Inc. and changed its name to Caterpillar Elkader LLC in February 2008. It plans to move its Elkader production to Wamego, Kan.
“The action taken today will help optimize current and future manufacturing operations and leverage the existing support structure in order to make the best use of manufacturing capacity,” said Janice Walters, senior communications representative, in a prepared statement.
“The company expects the product transition from Elkader to Wamego to be completed by the end of 2017. Caterpillar knows this is difficult for its employees and families, but steps must be taken to position the company for long-term success.”