Caterpillar might end production in Aurora
Peoria-based Caterpillar Inc. is looking to close its production facility in Aurora and move those manufacturing operations to other U.S. plants, a move which could affect 800 production positions.
The company said it was contemplating shifting production of large wheel loaders and compactors to Decatur and medium wheel loaders to North Little Rock, Ark., according to a statement released Wednesday afternoon. Those are the primary products currently manufactured in Aurora.
"Faced with lower demand, we continue to evaluate our global manufacturing capacity," Denise Johnson, Resource Industries group president, said in the release. "We must use our existing space in the most efficient way possible while maintaining the ability to meet demand when it returns."
Caterpillar's global sales and revenue slumped in 2016 to an estimated $39 billion, and the company has called for largely similar figures this year, with $38 billion as a "reasonable" midpoint for sales and revenue. Year-end figures for 2016 will be available later this month when the company releases its fourth-quarter earnings report.
The world's largest manufacturer of earth-moving equipment currently employs about 2,000 people in Aurora, according to a company spokesperson. The company plans to maintain an office in Aurora for engineering and product support work.
This story was first published in the Peoria Journal Star.