Winnebago Industries Inc. said it is increasing production and recalling more than 120 laid-off workers because of recent large orders from recreational vehicle rental agencies.

Earlier this month, the company returned its three plants to a full five-day work week for the first time since mid-October because of optimism about a spring upturn in business.The gradual recall of workers will increase the Winnebago work force to just under 2,000 and will leave some 300 employees laid off, said spokeswoman Shiela Davis at the company's Forest City headquarters. "Circumstances today are such that we should start seeing improvements in the recreation vehicle industry," said Fred Dohrmann, Winnebago's chief operating officer.