Caterpillar to Close Five Plants, Shed 820 Jobs
April 28 2016 - 9:00PM
Dow Jones News
By Bob Tita
Caterpillar Inc. said Thursday it will close five U.S. plants
and shed about 820 positions as the construction-equipment maker
continues to scale back its production and workforce in response to
falling demand.
The cutbacks are part of a strategy outlined by the Peoria,
Ill.-based company in September to trim its workforce by about
10,000 positions and close or consolidate about 20 facilities
through 2018. The company said Thursday it has shed about 5,300
positions so far.
The plants in North Carolina, South Carolina, Florida and
Mississippi designated for closure mostly produce components for
Caterpillar machinery and engines. Their operations will be merged
into other Caterpillar plants or assigned to parts suppliers
outside of the company during the next 12 months to 18 months.
Caterpillar has a world-wide workforce is about 11,400.
Caterpillar's 2016 revenue is expected to be down about 38% from
the company's peak level of $66 billion in 2012, as the company
struggles through a global sales slump for mining and construction
machinery.
Caterpillar said it would close a packaging plant for electric
generators in Newberry, S.C., with 325 jobs and another plant in
Ridgeway, S.C., with 75 positions that makes control panels for
generators. A plant in Oxford, Miss., that makes hose couplings
with about 240 jobs will be closed next year.
Production of wheel-loader buckets and other attachments in
Jacksonville, Fla, will cease by the end of the year, eliminating
about 70 positions. A plant in Morganton, N.C., that makes engines
and other components is expected to end production next year,
affecting about 110 jobs. Caterpillar also said it would demolish
an idle plant near Peoria where it made engines until 2011
Write to Bob Tita at robert.tita@wsj.com
(END) Dow Jones Newswires
April 28, 2016 20:45 ET (00:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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