Caterpillar shuts plant
in Aurora, Illinois, that employs 800
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[April 01, 2017]
By Gayathree Ganesan and Akankshita Mukhopadhyay
(Reuters) - Caterpillar Inc <CAT.N> said on
Friday it will shut its Aurora, Illinois, plant, costing about 800
employees their jobs as the world's largest construction and mining
equipment maker shifts production to other U.S. facilities.
Caterpillar was among companies that met with President Donald Trump in
February to talk about job creation, at a time when about 2,300 U.S.
workers at five major manufacturing companies stand to lose their jobs
within the next two years as a result of offshoring.
The company said it will transition its large wheel loaders and
compactors to its plant in Decatur, Illinois, and medium wheel loaders
to North Little Rock, Arkansas.
"Out of about 800 production positions, about 500 positions would likely
be added to Decatur and about 150 positions would be added in North
Little Rock," Caterpillar spokeswoman Lisa Miller told Reuters.
The company has already slashed its workforce by more than 16,000 to
cope with a slumping economy and had said it would take another $500
million in restructuring costs in 2017.
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A Caterpillar corporate logo is pictured on a building in Peoria,
Illinois, U.S. March 19, 2017. REUTERS/Carlo Allegri
Caterpillar said, in January, that it was considering closing two major
production facilities, including the one in Aurora, Illinois, where it makes
large-wheel loaders and compactors.
The plant closure is expected to be completed by the end of 2018, Caterpillar
said in a statement.
The company in January forecast 2017 profit sharply below analysts' estimates,
hurt by sluggish demand in the construction and energy industries.
Caterpillar had about 95,400 full-time employees of whom 54,500 persons were
located outside the United States as of Dec. 31, according to a regulatory
(Reporting by Gayathree Ganesan and Akankshita Mukhopadhyay in Bengaluru;
Editing by Lisa Shumaker)
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