Cat to Close Two Manufacturing Plants
David Wagman | April 02, 2017Caterpillar says it will close its Gosselies, Belgium, facility, impacting about 2,000 employees. It also plans to close a facility near Aurora, Ill., impacting 800 workers, many of whom are members of the United Auto Workers.
Last September the company said it was considering moving the Belgian facility's production to other manufacturing facilities, including Grenoble, France.
With the March 27 decision to close, production will be phased out by mid-year 2017, the company says. Other operations are expected to be phased out through 2017.
In Illinois, large wheel loaders and compactor production will be moved from Aurora to the company's Decatur, Ill., plant. Its medium wheel loader production line will be moved to the North Little Rock, Ark., plant. Out of about 800 production positions, some 500 may be added to Decatur. Another 150 could be added in North Little Rock, news reports said.
The Aurora plant closing is expected to be completed by the end of 2018. Earlier in 2017, the company said it would lay off employees in 2017 because of an anticipated decline in demand for its earth-moving products. The company has already cut its workforce by more than 16,000 and has said it would take $500 million in restructuring costs in 2017.