The final transition is expected to be completed within the next 12 to 18 months.
Caterpillar will shutter its plants at Jacksonville – Florida, Morganton North Carolina, Oxford – Mississippi, and two in SC. The closures will result in a reduction of about 820 positions.
Caterpillar will also demolish a factory building in Mossville, Illinois, to save money. It housed an engine manufacturing portion of the company until 2011 so no employment will be impacted. Preparations will begin this spring, with demolition beginning later this year.
More specifically, Asia/Pacific sales declined 23 per cent due to declining demand for energy and transportation applications and products used in mining, while sales plunged even worse in Latin America where Caterpillar posted a 43 per cent decline during the first-quarter, mostly due to economic weakness in Brazil and Mexico. It also said it will shut down a packaging plant for electric generators in Newberry, S. C. and that will cost 325 jobs. The work will be consolidated into existing Caterpillar engine facilities in Seguin, Texas, Lafayette, Indiana, and Griffin, Georgia. This transition is expected to begin this year and be completed in the next 12-18 months.
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The Oxford plant, with 240 employees stamping metal hose couplings, will continue work into 2017, then shift some production to Caterpillar’s plant in Menominee, Michigan, and some work to outside suppliers. Including Thursday’s announcements, the company has announced the closure or consolidation of about 20 facilities, representing about a 7 percent reduction of Caterpillar’s manufacturing footprint.
Caterpillar started its current restructuring plan in 2015.
Caterpillar said in the release it “recognizes these restructuring actions are painful for its dedicated workforce, their families and the impacted communities”.
They said these actions are resulting in substantial cost reduction in tough market conditions. Maynard said Caterpillar had trimmed more than 100 workers in Oxford, but said the loss of the remaining jobs would still be “devastating” to remaining workers.
