CAT Caterpillar Inc

By Anne Steele 

Caterpillar Inc. said it would move its global headquarters to Chicago from its longtime Peoria, Ill., home, becoming the latest Midwestern company to migrate to a larger city.

Chief Executive Jim Umpleby, who took the helm Jan. 1, said the board had been discussing the benefits of a more accessible, strategic location "for some time."

Caterpillar, known for its hulking yellow excavators and bulldozers, is the world's largest mining and construction equipment maker.

"Since 2012, about two-thirds of Caterpillar's sales and revenues have come from outside the United States," he said. "Locating our headquarters closer to a global transportation hub, such as Chicago, means we can meet with our global customers, dealers and employees more easily and frequently."

A small number of senior executives will move into leased office space beginning in 2017. Caterpillar expects about 300 employees to be based in the new location when fully operational -- including some positions relocated from the Peoria area.

Mr. Umpleby said the company values its deep roots in Central Illinois, and "Peoria will continue to be our hometown," where the vast majority of employees will remain.

Caterpillar, pointing to "continuing challenging market conditions and the need to prioritize resources to focus on growth," said it would not build the previously announced headquarters complex in Peoria.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

January 31, 2017 10:54 ET (15:54 GMT)

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