Gates Corporation announces the closure of Iowa hydraulic hose facility

Newton, Iowa – Gates Corp. has announced it will be closing its Newton facility in November, laying off 41 workers. This after the Company also announced that its Board of Directors has authorized a share repurchase program of up to $250 million of the Company’s ordinary shares. This authorization is valid through December 2025. This authorization replaces the existing authorization that was set to expire in October 2024.

The closure was posted on Iowa’s Worker Adjustment and Retraining Notification site. No reason was given for the closure, but Gates, a manufacturer of power transmission and fluid power solutions based in Denver, has been a supplier of hydraulic hoses to John Deere, which has cut thousands of jobs in Iowa and Illinois in recent months amid a downturn in agriculture-related manufacturing.

The 65,000 square foot facility, located in Newton’s industrial park on the city’s north side, is valued at $1.9 million, according to the Jasper County assessor’s website.