Caterpillar plant digs out from tornado hit

Caterpillar Inc., the world's largest maker of bulldozers and excavators based in Peoria, said a parts factory in Oxford, Miss., was heavily damaged as tornadoes swept through the South Wednesday.

The plant, which makes hydraulic hose couplings for Caterpillar's machines and engines, is "non-operational," said spokesman Jim Dugan. The southwest corner of the 180 ,000-square-foot building collapsed after it was struck by the tornado at about 6 p.m.

"It was a direct hit from a tornado," said Dugan, who arrived at Oxford Thursday to survey the situation. "We're still assessing the damage to determine the nature and extent of it."

About 90 of the 290 workers employed at the plant were there when the tornado struck, Dugan said. They were evacuated to storm shelters and "very minor injuries" were reported.

The facility is one of 98 manufacturing plants Caterpillar operates in the U.S. and 174 globally. The steel couplings the company makes in Oxford are used in a number of machines and it wasn't clear whether the damage would affect production, Dugan said.

"It's a part of a business unit that has facilities all over the world," he said. "We're still trying to get a full understanding of the situation."

Caterpillar said in a statement late Thursday it is working with suppliers and dealers to ensure customers' needs are met. It has hired a design and construction firm to begin work to restart damaged operations in Oxford as soon as possible.

The tornadoes, spawned by unseasonably warm temperatures killed at least 48 people in Tennessee, Arkansas, Kentucky and Alabama.

FedEx Corp. said the storm tore the roof off a building at its main airport hub in Memphis.

Caterpillar shares rose Thursday after declining 6 percent the previous two days on increased concern the U.S. may be entering a recession. Caterpillar gained 46 cents to $67.98 in New York Stock Exchange composite trading.