CHARLES CITY- The Winnebago Industries Charles City Manufacturing Facility will be closed indefinitely effective Aug. 1.

An estimated 270 salaried and hourly employees will be out of work when production stops.

"This will be indefinite until the economy turns around," said Bob Olson, president and chairman of the board and CEO at Winnebago.

Production of Class C motor homes - built on a van chassis with an attached cab section - will move to Winnebago's main plant in Forest City.

A total of 190 employees will remain in the company's two other Charles City plants - the hardwoods facility and the assembly facility.

The manufacturing plant is being closed because of dramatic changes in the market since it opened in 2004, according to a news release.

Winnebago officials said the declining U.S. economy, higher fuel prices, decreasing consumer confidence and difficulties getting loans have contributed to a decrease in motor home demand. Retail sales have declined by double-digit percentages for seven of the last eight months for the industry.

The company laid off more than 200 employees earlier this year, mostly at the Forest City plant. The company didn't fill another 100 positions vacated when employees retired or quit. This left about 3,000 employees at the company's plants in Forest City, Charles City and Hampton.

Winnebago managers met with Charles City employees Monday to announce the closing and offer them support through the company's employee assistance program.

The company also will coordinate support from state, regional and local agencies to assist with job placement, training, other services and benefits available to dislocated workers.

"As a 38-year employee who has been through several industry downturns in the past, I know how devastating this can be for employees, so the decision to idle CCMF has been particularly painful," Olson said. "Unfortunately, it is necessary so that we more closely align our capacity with market demand."

Employees at all Winnebago locations have felt the impact of the downturn, Olson said.

Production was reduced during 12 of the 13 weeks of the last quarter through either four-day work weeks or shutting down entire production lines for a week at a time.

Olson said the company is in a good position to weather the current downturn, with "significant cash and investment balances, no debt and with the benefit of a respected brand name."

Charles City Mayor Jim Erb said the city's primary concern is helping the dislocated workers find other employment.

"We certainly look to cooperate with the local economic development organizations, the employees and the employer," he said.

Employee Rick Cordao has worked there for five years, most recently as an installer of restroom doors in the smaller motor homes.

He had been planning to refinance his home loan for a lower interest rate. Now he's concerned about making payments while living on unemployment.

Cordao will need something new to support him and his daughter, Milagro, 11.

"I guess we've just got to leave it in God's hands, take it day by day," he said Monday. "I may have to go to Mason City to look for a job."

Globe-Gazette staff writer Dick Johnson contributed to this article.

Contact Mary Pieper at mary.pieper@globegazette.com.