Caterpillar is closing its plant in Owatonna, costing about 100 employees their jobs.
The facility, which makes machines that cut and harvest trees, will close by March 1, 2013.
"We needed to restructure our forestry business within Caterpillar. In order to make it successful in the long term, make it competitive, we had to make some changes, said Rachel Potts, a company spokeswoman. "The decision is to consolidate production within the forestry operation from three facilities down to two."
The work will be shifted to the company's plants in Wisconsin and Georgia.
Employees losing their jobs will receive severance packages and help finding other work. About 20 engineers will continue work for Caterpillar in Owatonna.