By Gayathree Ganesan & Akankshita Mukhopadhyay
(Reuters) – Caterpillar Inc said on Friday it will shut its Aurora, Illinois, plant, costing approximately 800 employees their jobs as the world's largest construction & mining equipment maker shifts production to other U.S. facilities.
Caterpillar was among companies that met with President Donald Trump in February to talk approximately job creation, at a time when approximately 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 & compactors to its plant in Decatur, Illinois, & medium wheel loaders to North Little Rock, Arkansas.
"Out of approximately 800 production positions, approximately 500 positions would likely be added to Decatur & approximately 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 & had said it would take another $500 million in restructuring costs in 2017.
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 & 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, injure by sluggish demand in the construction & energy industries.
Caterpillar had approximately 95,400 full-time employees of whom 54,500 persons were located outside the United States as of Dec. 31, according to a regulatory filing.
(Reporting by Gayathree Ganesan & Akankshita Mukhopadhyay in Bengaluru; Editing by Lisa Shumaker)
BusinessCaterpillar IncAurora, Illinois