Caterpillar Contemplating Closure of Belgium Facility

Caterpillar is considering a plan 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.

If Caterpillar decides to pursue this option, the volumes produced at the Gosselies facility would be produced at the manufacturing facility in Grenoble, France, and at other manufacturing facilities outside Europe. Caterpillar also may allocate component production to external suppliers and other Caterpillar facilities and consolidate support functions to other sites. The plan would result in a collective layoff of about 2,000 employees and 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,” said Tom Pellette, group president with responsibility for Construction Industries. “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.”

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