Caterpillar rules Illinois out of plant plans

PEORIA — Caterpillar Inc. has ruled Illinois out of plans to relocate a factory and 1,400 jobs from Japan. The Peoria-based heavy-equipment maker cited both logistical problems and ongoing concerns about the state's business climate.

Caterpillar laid out its decision Tuesday in an email to leaders in Peoria County. The county was one of fewer than a dozen Illinois locations trying to win the new plant.

In the email, the company says it considered factors including port access and labor markets in deciding Illinois won't work. The email also says a key factor was proximity to Caterpillar's division headquarters in Cary, N.C.

Caterpillar spokesman Jim Dugan would only say Wednesday that a location will be announced by April 1.

A spokeswoman says Gov. Pat Quinn hopes to address some concerns about Illinois' business climate that Caterpillar Inc. cited in its decision not to build a new plant in the state.