Winnebago Industries will hire about 175 workers in Forest City as it returns the production of its large diesel coaches from the West Coast back to Iowa.

The company soon will manufacture all of its motorhome models in Forest City, its traditional headquarters. In a news release Monday, Winnebago said bringing its Class A diesel motorhomes back to Iowa will consolidate and centralize product development, the supply chain and assembly work at one location.

Winnebago employs about 250 people in its plant in Junction City, Oregon, which it acquired in fall 2015. The next year, Winnebago moved its diesel lines from Forest City to the Junction City campus.

Executives had previously said the move would save on shipping costs by allowing easy access to the lucrative West Coast market.

But the company never realized its efficiency and profitability goals from the move, Brian Hazelton, vice president and general manager of the motorhome business, said in a news release.

"This difficult decision to relocate diesel manufacturing back to Forest City, Iowa, and centralize our diesel business value chain geographically is necessary," he said. "It will enable more effective product development, enhance profitability through increased manufacturing efficiency and sourcing savings, and, most importantly, result in being a more reliable supplier to our diesel dealers and end customers."

Winnebago had difficulty developing "an efficient and reliable" West Coast supply chain, which has forced the company to rely on manufacturing and shipping key components from Iowa, Chad Reece, director of corporate relations, told the Register.

Meanwhile, initiatives in Forest City have created efficiencies that can take advantage of existing supply chains, engineering design and product development. The company in July terminated fewer than 35 Forest City workers as it refined staffing levels there.

The publicly traded company employs about 4,600 employees, including about 2,000 in Forest City. The addition of the diesel product lineup won't require expanding the plant, Reece said.

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Winnebago plans to begin the transition to Forest City immediately, with all production moving to Iowa by the fourth quarter of its 2019 fiscal year.

Winnebago plans to keep about 30 employees in Oregon to operate an aftermarket and RV parts support facility there.

The Oregon plant produces the Horizon, which was named the 2018 RV of the Year. It was among a trio of new models the company introduced in late 2017 as a team of new executives sought to appeal to younger and non-traditional RV buyers.

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Winnebago predicts the move from Oregon to Iowa will hurt third- and fourth-quarter fiscal earnings per share by about 2 cents.

But the transition is expected to generate $4 million in annualized efficiencies by fiscal 2021.