Associated Press | Caterpillar Inc., the world’s largest maker of mining and construction equipment, said Thursday it is considering building a new factory in the U.S to produce hydraulic excavators, a common piece of construction equipment.
The company is studying building a new domestic plant that would produce several excavator models currently made at Caterpillar’s factory in Akashi, Japan.
The new facility would also take over production of two models currently built in Aurora and triple the company’s domestic production capacity.
Caterpillar said the move would “significantly increase” the company’s domestic employment in the U.S. that is dedicated to excavator production.
The company also said its Japanese plant could be expanded to handle increasing demand in Asia and China in particular.
“The study is based on the current analysis of where the global excavator market is heading and how Caterpillar should position itself for continued leadership in the excavator industry,” Caterpillar Vice President Gary Stampanato said in a statement.
A year ago, Caterpillar announced plans to lay off more than 2,400 employees at five U.S. plants as the heavy equipment maker tried to cut costs amid the global economic downturn.
Shares of the company fell 48 cents to $58.30 in morning trading.
Don’t bet on it. Remember when Obama bragged about how many Cat employees were going to be rehired? Only to hear a week later from the Cat CEO that no employees were being hired back? Cat will do what’s in Cat’s best interests and that includes avoiding expensive labor costs here in Illinois.
The article didn’t say where in the USA a new plant might be built. You can bet it won’t be in Illinois. Also, remember that it was Obama – not the Cat CEO – that bragged about the rehiring of employees. Nothing is ever guaranteed but generally business leaders are better qualified than politicians to talk about business.
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