On Wednesday, Caterpillar Inc.(NYSE:CAT) it is thinking over shifting almost 800 production jobs from its Aurora, Illinois-area plant to factories in Decatur, Illinois and North Little Rock, Arkansas.
If finalized, the shift would put a halt to manufacturing processes at the suburban Chicago plant, which is in fact situated in Montgomery in spite of its Aurora name.
Production of huge wheel loaders and compactors would move to downstate Decatur and medium-wheel loaders to North Little Rock.
Caterpillar (NYSE: CAT) shares were up almost 0.62% during Thursday session after the heavy machinery company reported in a news release that it would keep an office in Aurora for management, engineering and product support work. Nearly 1,200 workers presently work at the Aurora plant in those roles, firm spokesperson Jamie Fox stated.
Caterpillar reps made sure that the issue is still under assessment and the amount of jobs that might shift has yet to be declared. Fox reported that the firm does not expect to finalize until the second quarter of 2017 and execute the final plan until 2018.
The Peoria, Illinois-located heavy equipment manufacturer has strived in past years, hammered by rough emerging market situations, declines in commodity prices, and harsh foreign exchange rates. All of those obstacles have joined hands to sap demand for Caterpillar’s items, compelling the firm to dismiss thousands of workers locally and overseas. Local officials showed deep concerns over the potential loss of jobs and decided to work with Caterpillar on the issue, the Aurora Beacon-News informed.