Harley-Davidson says it will no longer pursue a plan to move some operations to Kentucky after workers at the motorcycle maker's central Pennsylvania plant agreed to a new seven-year contract.

Harley-Davidson CEO Keith Wandell said the company's board decided Thursday to restructure its operations at the York plant, its largest motorcyle assembly plant. It plans to lay off about half of the plant's work force even as it consolidates work there rather than move.

The company based in Milwaukee says the restructuring will cost approximately $200 million over three years.

It expects to spend about $90 million in capital improvements on the York plant. The company has said the plant is too inefficient and costly.

Workers approved the contract Wednesday. It included concessions including wage freezes.