Winnebago Industries is planning to shut down its sewing unit in Lorimor by June.
This unit employs about 46 workers who produce cushions, curtains and bedspreads for Winnebago motorhomes.
Operation will be shifted to the plants in Forest City and Charles City.
Kent Forbes, Lorimor Mayor, believed that it was a huge loss for the Union County as the company is the sole large employer in the city of 427.
Company explained that the plant was being closed for effective manufacturing.
It was also reported that some of the workers will be offered positions at other units, some others will be eligible for retirement and the remaining staff will be provided with unemployment benefits.
Winnebago Industries builds quality motor homes with state-of-the-art computer-aided design and manufacturing systems on automotive-styled assembly lines.