Caterpillar contemplates allocation of production from Gosselies, Belgium, to other manufacturing facilities
PEORIA, Ill., Sept. 2, 2016 -- Caterpillar Inc. (NYSE: CAT) today announced it is contemplating to allocate the volumes produced at its facility in Gosselies, Belgium, to other manufacturing facilities. The Gosselies plant primarily manufactures construction equipment. This announcement starts an information and consultation process, which could result in the closure of the Gosselies site and a collective lay-off. This announcement is in connection with the global restructuring and cost savings plan announced in September 2015.
Following extensive review, Caterpillar is contemplating to allocate the volumes that are produced at the Gosselies facility to the manufacturing facility in Grenoble, France, and to other manufacturing facilities outside Europe. It is also contemplated to allocate component production to external suppliers and other Caterpillar facilities and to consolidate support functions to other sites. If this intention would be confirmed, it would result in a collective lay-off of about 2,000 employees and in the closure of the Gosselies site.
"We have to contemplate actions to reduce manufacturing capacity and take operating costs out of our business to align with lower demand. Should the intention be confirmed, we will support the local leadership in order to mitigate the impact on our employees, their families and the communities where we're located," said Tom Pellette, group president with responsibility for Construction Industries.
During the upcoming information and consultation process, Caterpillar is committed to comply with the applicable laws and to engage in a constructive dialogue with the employee representatives in order to minimize the social impact.
For 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2015 sales and revenues of $47.011 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company principally operates through its three product segments - Construction Industries, Resource Industries and Energy & Transportation - and also provides financing and related services through its Financial Products segment. For more information, visitcaterpillar.com. To connect with us on social media, visit caterpillar.com/social-media.
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SOURCE: Caterpillar Inc.
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